Volvo is cutting thousands of jobs in “cost and cash action plan”

Volvo at the luxury auto industry company reduces 3000 jobs, representing about 15 % of the workforce in the company’s office.

The most affected advertisement on Monday says the most affected positions in Sweden. The job cuts are mostly white collar parts are part of the “recently launched cost and cash work plan”, according to a media statement.

Workers’ layoffs come at a time when the Swedish auto industry company is trying to revive its falling share and better hand over the demand to its cars by restructuring part of its business and reducing its costs.

“The auto industry is in the middle of a difficult period.” “To address this, we must improve the generation of our cash flows and reduce our costs in terms of structurally. At the same time, we will continue to ensure the development of the talent we need for our ambitious future.”

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With most of its production in Europe and China, Volvo Cars is exposed to the new American definitions more than many of its European competitors

On Friday, President Donald Trump threatened to impose a 50 % tariff on imports from the European Union starting from June 1, but on Monday he fell on that date, as it regained a final date on July 9 to allow talks between Washington and Brussels.

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The Volvo Electric is displayed in the everything Electric, The Home Energy & Electric Oper Show, in London, Britain, April 16, 2025. (Maga Smicovska / Reuters)

The Volvo logo was seen inside a car dealer in Nijmegen, the Netherlands February 26, 2025. (Piroschka Van De Wouw / File Photo / Reuters)

Volvo shares increased by 3.6 % by Monday, according to Reuters, with most of the height appeared before the expropriation of workers. They still decreased by 24 % on an annual basis.

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In 2024, Volvo had more than 44,000 employees worldwide, according to Reuters. Nearly 20,000 white collars workers. The auto company expects to bear the cost of a single restructuring of 1.5 billion crowns.

Reuters contributed to this report.