Sweden’s Volvo Automobiles stated Monday it might reduce 3,000 jobs, or round 15 p.c of its office-based workforce, as a part of a $1.9 billion cost-cutting plan introduced final month amid powerful market situations.
The carmaker, owned by Chinese language group Geely, stated the cuts aimed “to construct a stronger and much more resilient Volvo Automobiles at a time when the automotive business is going through appreciable challenges in its exterior surroundings”.
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 stated.
“The automotive business is in the course of a difficult interval. To deal with this, we should enhance our money stream technology and structurally decrease our prices,” the corporate’s chief govt Hakan Samuelsson stated in an announcement.
Asserting the cost-cutting plan in April, he stated Volvo Automobiles needed to adapt to a “extra regionalised world”, referring to the commerce conflict between China and the US.
The Swedish group is having to deal with greater tariffs on vehicles made outdoors the US, subjected to a 25-percent tariff since early April.
Volvo Automobiles introduced in early April that it might enhance its manufacturing in the US and doubtless produce an extra mannequin there.
It additionally inaugurated a brand new manufacturing line at its manufacturing unit in Ghent, Belgium in late April, devoted to its small electrical SUV EX30.
On account of the job cuts introduced Monday, Volvo Automobiles stated 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 staff.
This story was initially featured on Fortune.com