Volvo Cars to cut 3,000 jobs amid restructuring
From Yahoo Finance: 2025-05-27 06:40:00
Volvo Cars plans to cut 3,000 jobs to address high costs, slow electric vehicle demand, and trade uncertainties. The restructuring aims to boost demand and improve share price by reducing expenses and restructuring operations. The plan targets cost reductions of Skr18bn, with layoffs affecting 15% of office staff globally.
The layoffs will include 1,000 consultant roles in Sweden and 1,200 employee positions worldwide, incurring a one-time restructuring cost of Skr1.5bn. Volvo Cars president Håkan Samuelsson stated the actions are necessary to build a stronger and more resilient company in a challenging automotive industry. The company aims to become fully electric as its electric car lineup grows rapidly.
Volvo Car Group reported a record Skr27bn operating profit in 2024, with revenue reaching Skr400.2bn and global sales hitting a record 763,389 cars. The company had nearly 42,600 full-time employees as of December 2024. The new structural setup is expected to be finalized by autumn this year, contributing to the company’s ambitious future.