The majority of the job cuts will affect office-based positions in Sweden. Volvo Cars said the decision would help to build a stronger and more resilient company down the line.
Sweden-based Volvo Cars is eliminating 3,000 positions as part of a cost-cutting programme as the automotive industry faces challenges from trade tensions and resulting economic uncertainty.
The company said on Monday that around 1,200 of the job reductions would affect workers in Sweden, while another 1,000 positions currently filled by consultants, mostly in Sweden, were also slated for elimination.
The rest of the job losses would be in other global markets, said the firm. Most of the jobs being cut are office positions.
“The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars,” said Håkan Samuelsson, Volvo Cars president and CEO.
“The automotive industry is in the middle of a challenging period. To address this, we must improve our cash flow generation and structurally lower our costs.”
The company, owned by China’s Geely, has 42,600 full-time employees.
Carmakers around the world are facing several headwinds, among them higher costs for raw materials, a diminished European car market, and US President Donald Trump’s imposition of 25% tariffs on imported cars and steel.
Volvo Cars has its main headquarters and product development offices in Gothenburg, Sweden, and makes cars and SUVs in Belgium, South Carolina and China.
Credit: EURONEWS