Volvo Cars to cut 3,000 jobs globally in major restructuring
Swedish carmaker Volvo Cars will reduce its global workforce by approximately 3,000 positions, including consultants, as part of a sweeping cost-cutting programme aimed at securing long-term profitability amid growing pressure in the automotive industry.
The move is part of an SEK 18 billion (EUR 1.6 billion) action plan launched by the company to create what it calls a “leaner, more efficient organisation with a structurally lower cost base.” The planned reductions will primarily impact office-based roles, with Sweden expected to bear the brunt of the changes.
Roughly 1,200 employee positions will be cut at Volvo Cars' Swedish entity, Volvo Personvagnar AB, alongside about 1,000 consultants, most of whom are also based in Sweden. The remaining reductions will affect other global markets, though exact figures for each region have yet to be finalised.
“These structural changes are necessary for Volvo Cars to deliver on its long-term strategy,” the company writes in a press release detailing the redundancies.
In total, the cuts represent around 15% of Volvo Cars’ global office-based workforce. The company said it has initiated negotiations with relevant labour unions.
“The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars,” says Håkan Samuelsson, Volvo Cars President and CEO, in a press release. “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. At the same time, we will continue to ensure the development of the talent we need for our ambitious future.”
Volvo Cars aims to complete the organisational restructuring by autumn 2025, following a full review of its global operations.
As previously reported by Evertiq, Håkan Samuelsson returned as CEO and President of Volvo earlier in April this year, taking over from Jim Rowan who has served as CEO since 2022.
This leadership transition came at, what was described as, a critical time for Volvo Cars and the broader automotive industry. Given the rapid technological advancements, geopolitical challenges, and intensifying competition, the Board believed that strong, experienced leadership would be essential to navigate these challenges.
