President Donald Trump takes questions from reporters on the tarmac in Morristown, New Jersey.
Luxurious automaker Volvo is slashing 3,000 jobs, representing about 15% of the corporate’s office-based workforce.
The announcement made Monday says probably the most impacted positions are in Sweden. The largely white-collar job cuts are a part of the corporate’s “recently launched cost and cash action plan,” based on a media launch.
The layoffs come because the Swedish automaker tries to resurrect its plummeting share value and drum up higher demand for its automobiles by restructuring a part of its enterprise and reducing prices.
“The automotive industry is in the middle of a challenging period,” Håkan Samuelsson, Volvo Automobiles President and CEO, stated in a press release. “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.”
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A Volvo brand is pictured in Brussels, Belgium March 4, 2024. (Yves Herman/File Photograph / Reuters)
With most of its manufacturing primarily based in Europe and China, Volvo Automobiles is extra uncovered to new U.S. tariffs than lots of its European rivals, and has stated it might develop into unimaginable to export its most inexpensive automobiles to the U.S.
On Friday, President Donald Trump threatened to impose a 50% tariff on imports from the European Union from June 1, however on Monday he backed away from that date, restoring a July 9 deadline to permit for talks between Washington and Brussels.
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Volvo electrical automotive is being exhibited on the Every thing Electrical, the Dwelling Power & Electrical Automobile Present, in London, Britain, April 16, 2025. (Maja Smiejkowska / Reuters)
A brand of Volvo is seen inside a automotive seller in Nijmegen, Netherlands February 26, 2025. (Piroschka van de Wouw/File Photograph / Reuters)
Volvo Automobiles’ shares had been up 3.6% by Monday, Reuters reported, with a lot of the rise coming earlier than the layoff announcement. They’re nonetheless down 24% year-to-date.
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In 2024, Volvo had over 44,000 workers globally, based on Reuters. Roughly 20,000 had been white-collar staff. The automaker expects to incur a one-time restructuring price of 1.5 billion crowns.
Reuters contributed to this report.
