Swedish automaker Volvo Cars has announced plans to reduce its workforce by approximately 3,000 positions, primarily affecting white-collar roles in Sweden. This move is part of a broader cost-cutting strategy aimed at addressing declining profits and navigating global trade uncertainties. Volvo Cars, headquartered in Gothenburg, Sweden, is majority-owned by China’s Geely Holding Group. The company has faced significant financial pressures, including a 73% drop in net profit for the first quarter of 2025, largely due to a 25% U.S. tariff on imported vehicles. These tariffs have particularly impacted Volvo, as many of its U.S.-sold cars are imported from Europe. In response, Volvo has withdrawn its financial guidance for the next two years and implemented an 18 billion Swedish kronor (€1.6 billion) cost-saving plan, which includes job cuts and reduced investments .
CEO Håkan Samuelsson, who was reinstated earlier this year, stated that the company is “adapting to a more regionalized world” and focusing on “profitability, electrification, and regionalization” as key areas for improvement . The job cuts are expected to be completed by the fall of 2025, with the majority of positions eliminated in Gothenburg.
Despite these challenges, Volvo remains committed to its electrification strategy, continuing with upcoming deliveries of the EX30 electric vehicle and production of the EX90. The company is also strengthening its regional operations, including expanding its plant in Charleston, South Carolina, to better cater to the North American market .
The automotive industry is facing a period of significant transformation, with companies like Volvo navigating trade tensions, shifting consumer preferences, and the ongoing transition to electric vehicles. As Volvo moves forward with its restructuring efforts, the company aims to emerge more resilient and better positioned to meet the demands of the evolving global market.
