Volvo Cars announced on May 26 that it will reduce its global white-collar workforce by approximately 3,000 positions as part of a broader cost‐cutting and restructuring initiative. The Swedish automaker’s plan, unveiled in April by returning CEO Håkan Samuelsson, aims to save around 18 billion Swedish crowns (about $1.9 billion) through efficiency improvements across all departments.
The job cuts, representing roughly 15% of Volvo’s office staff, will affect functions including research and development, communications, and human resources. CFO Fredrik Hansson indicated that while the reductions will span the company’s global footprint, a significant share will take place at its Gothenburg headquarters. The one-time restructuring charge is estimated at 1.5 billion crowns.
Samuelsson described the workforce realignment as necessary to streamline operations and “make space for people to take on bigger responsibilities.” He said the company intends to finalize a new organizational structure by this autumn. Hansson added that the review process is “tailored to make us structurally more efficient” and that no area of the business is exempt from scrutiny.
Volvo Cars has been contending with elevated production costs, a slowdown in electric vehicle demand, and potential U.S. tariffs that could further challenge exports of its more affordable models. The company, which manufactures primarily in Europe and China, withdrew its financial guidance last month, citing market unpredictability and tariff risks.
Analyst Hampus Engellau of Handelsbanken noted that the scale of the job reductions aligns with market expectations and views the move to streamline operations as a positive step. Following the announcement, Volvo’s shares rose 3.6% by mid-afternoon Stockholm time, though they remain about 24% below their year-end level.
Source: Reuters
