Volvo to slash 3,000 white-collar jobs in restructuring move: Report

Volvo Cars has decided to cut around 3,000 office jobs as part of a major cost-saving plan. The Swedish carmaker is facing rising costs, weaker demand for electric vehicles (EVs), and trade uncertainties, reported Reuters.

This decision comes just weeks after the company’s former CEO, Hakan Samuelsson, returned to lead Volvo again. In April, he shared a plan to reduce expenses by 18 billion Swedish crowns (about $1.9 billion).

A major portion of the cost-cutting will come from trimming white-collar roles, which account for around 40% of the company’s total staff. Globally, the company has about 29,000 employees in Europe, 10,000 in Asia, and 3,000 in the Americas.

Samuelsson said the job cuts will happen across different departments, like research, human resources, and communication.

Volvo Car’s new finance chief, Fredrik Hansson, added that while all parts of the business will be affected, most of the job losses will be in Gothenburg, Sweden.

According to Volvo Cars, nearly 15% of its office employees will be laid off, with the move expected to cost 1.5 billion crowns in restructuring charges. However, the move will help make its structure more efficient, said the company.

One of the key concerns for Volvo right now is trade tensions, especially with the US. Since most of its cars are made in Europe and China, new US tariffs could hit Volvo harder than other European brands. The company even warned it might not be able to sell some of its more affordable cars in the US if duties go up.

Volvo plans to complete its new business structure by autumn this year. According to analyst Hampus Engellau from Handelsbanken, the job cuts were expected, and the move could help the company become leaner and more focused in the long run.