Volvo Cars announced on Monday it will cut around 3,000 mostly white-collar jobs as part of a broad restructuring aimed at trimming costs by 18 billion Swedish crowns ($1.9 billion). The layoffs come amid slowing demand for electric vehicles (EVs), rising production costs, and ongoing trade uncertainties that have weighed on the company’s performance and share price.
CEO Hakan Samuelsson, who recently returned to lead the company, unveiled the restructuring plan in April to enhance the business’s efficiency. Approximately 15% of Volvo’s office staff will be affected, with most job cuts focused on white-collar roles across departments, including research and development, communications, and human resources. Volvo’s new CFO, Fredrik Hansson, stated that while the impact will be felt company-wide, Gothenburg will bear the majority of the redundancies.
The company expects a one-time restructuring cost of 1.5 billion crowns and aims to finalize the new organizational structure by autumn 2025.
Volvo, heavily reliant on production in Europe and China, faces particular challenges from potential U.S. tariffs, which could restrict exports of its most affordable cars to the American market. President Trump recently threatened a 50% tariff on EU imports but delayed implementation to July 9 to allow for negotiations.
The layoffs follow Volvo’s decision last month to withdraw its financial guidance, citing unpredictable markets and trade tensions impacting the global automotive industry. Despite the announcement, Volvo’s shares rose 3.6% on Monday but remain down 24% year-to-date.Â
