Volvo Cars to Cut 3,000 Jobs

Volvo Cars has announced it will reduce its workforce by around 3,000 positions, mostly affecting office-based roles in Sweden. The decision forms part of an ongoing cost-cutting drive aimed at making the company leaner and more resilient.

The Swedish car maker, owned by China’s Geely Holding Group, said that the cuts are part of a broader business overhaul that includes an 18 billion SEK (£1.4bn) action plan introduced last month. The cuts represent approximately 15% of Volvo’s white-collar staff.

The job cuts come as the global automotive sector is trying to deal with a range of challenges, from tariffs on imported cars in the US to rising material costs and slow sales across Europe. Volvo’s global sales for April were down 11% compared to last year.

Volvo, which operates from its headquarters in Gothenburg and has production plants in Sweden, Belgium, China, and the US, was acquired by Geely from Ford in 2010. While it committed to going fully electric by 2030, that target has since been scaled back due to new tariffs and market volatility.

The company’s announcement follows other similar ones from other manufacturers. Earlier this month, Nissan said it would cut 11,000 jobs and close seven factories worldwide, pushing its total layoffs over the past year to 20,000. Meanwhile, Chinese EV maker BYD has started a pricing war by cutting the cost of over 20 models, including its Seagull EV, now starting at just 55,800 yuan (£5,700).

That move forced companies like Changan and Leapmotor to do the same. The aggressive pricing strategy has caused share prices in Chinese car manufacturers to fall and has made it harder for many manufacturers to keep up.