Volvo Cars to slash 3,000 jobs in white-collar cutback

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Volvo Cars has announced plans to cut 3,000 jobs, mainly in white-collar positions, as part of a restructuring effort to address high costs, a decline in electric vehicle demand, and trade uncertainties. The Swedish automaker is aiming to boost demand for its cars and improve its share price through cost-cutting measures.

CEO Hakan Samuelsson, who recently returned to the role after previously leading the company, revealed a program in April to reduce costs by $1.9 billion, including a significant reduction in white-collar staff, who represent 40% of the workforce.

Samuelsson stated that the job cuts will affect various departments, including R&D, communication, and human resources. The restructuring aims to enhance efficiency and create opportunities for employees to take on larger roles.

New CFO Fredrik Hansson mentioned that while all departments and locations will be impacted, most of the job cuts will occur in Gothenburg. The restructuring is designed to make the company more structurally efficient.

The layoffs will account for around 15% of the company’s office staff and result in a one-time cost of 1.5 billion crowns. Volvo Cars, with production facilities in Europe and China, is more vulnerable to new US tariffs compared to its European competitors.

The company aims to finalize its new structural setup by the autumn of this year. Analysts view the restructuring positively as the company navigates unpredictable markets and trade challenges in the global auto industry.

Volvo Cars withdrew its financial guidance due to market uncertainties, including weaker consumer confidence and trade tariffs. President Trump’s recent tariff threats on imports from the European Union have added to the challenges faced by the company.

President Trump has since backed away from imposing a 50% tariff, allowing for further discussions between Washington and Brussels. The company continues to navigate the turbulent global trade landscape as it works towards a more streamlined and efficient operation.