Volvo Cars Cuts 3,000 Jobs Amid Economic Pressures
Volvo Cars plans to lay off 3,000 employees, primarily in Sweden, as part of a cost-cutting initiative driven by economic uncertainties and trade tensions. The automotive industry faces challenges like high raw material costs and tariffs, necessitating structural changes to improve cash flow and reduce expenses.
- Country:
- Germany
Volvo Cars, based in Sweden, has announced the elimination of 3,000 positions as part of a strategic cost-cutting program to tackle prevailing economic uncertainties and trade tensions in the automotive sector.
The reductions include approximately 1,200 jobs in Sweden and an additional 1,000 consultant positions, mostly in Sweden. The remaining job cuts will affect global markets, predominantly targeting office roles.
The CEO, Håkan Samuelsson, emphasized that these measures, though difficult, are crucial for bolstering Volvo's resilience. The automotive industry is grappling with several challenges, including heightened raw material costs and significant tariffs imposed by the US government. Owned by Geely of China, Volvo Cars employs 42,600 people and operates in Sweden, Belgium, South Carolina, and China.
(With inputs from agencies.)
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