Sweden’s Volvo Automobiles mentioned Monday it could reduce 3,000 jobs, or round 15 % of its office-based workforce, as a part of a $1.9 billion cost-cutting plan introduced final month amid powerful market circumstances.
The carmaker, owned by Chinese language group Geely, mentioned the cuts aimed “to build a stronger and even more resilient Volvo Cars at a time when the automotive industry is facing considerable challenges in its external environment”.
Of the three,000 jobs to be reduce, round 1,200 had been in Sweden, in addition to 1,000 consultants based totally within the Nordic nation, Volvo Automobiles mentioned.
“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 corporate’s chief government Hakan Samuelsson mentioned in a press release.
Saying the cost-cutting plan in April, he mentioned Volvo Automobiles needed to adapt to a “more regionalised world”, referring to the commerce warfare between China and america.
The Swedish group is having to deal with greater tariffs on automobiles made exterior america, subjected to a 25-percent tariff since early April.
Volvo Automobiles introduced in early April that it could improve its manufacturing in america and possibly produce an extra mannequin there.
It additionally inaugurated a brand new manufacturing line at its manufacturing facility in Ghent, Belgium in late April, devoted to its small electrical SUV EX30.
Because of the job cuts introduced Monday, Volvo Automobiles mentioned it anticipated to incur a one-time restructuring value of as much as 1.5 billion kronor ($158 million), booked on its second-quarter report.
On the finish of December 2024, Volvo Automobiles had round 42,600 full-time workers.
This story was initially featured on Fortune.com
