May 27 2025 – Volvo Cars, the Swedish automaker under the ownership of China’s Geely Holding Group, unveiled on Monday a significant workforce reduction as part of a restructuring initiative announced last month. The company plans to slash 3,000 jobs, predominantly affecting white-collar positions, amidst a backdrop of escalating costs, sluggish demand for electric vehicles, and looming uncertainties surrounding trade tariffs.
On April 29, Volvo Cars revealed a strategy to trim costs by 18 billion Swedish kronor, accompanied by a temporary halt on certain investments and a forewarning of inevitable layoffs. As per its first-quarter financial report, the automaker employed 43,500 full-time staff and an additional 3,000 temporary workers at that time.
In a statement, Volvo Cars clarified that the job cuts would predominantly impact office-based roles in Sweden, accounting for roughly 15% of its global office workforce. Hakan Samuelsson, the company’s CEO, emphasized, “The automotive sector is navigating through turbulent times. To navigate these challenges, we must enhance our cash flow generation capabilities and structurally reduce our expenses.”
During the announcement of the cost-cutting measures last month, Volvo Cars also withdrew its financial outlook, citing an unpredictable market landscape due to waning consumer confidence and global automotive industry disruptions triggered by trade tariffs.
Last Friday, U.S. President Donald Trump threatened to impose a 50% tariff on European Union imports starting June 1, but on Monday, he extended the deadline to July 9 to facilitate negotiations between Washington and Brussels.
In an interview with Reuters last Friday, Samuelsson cautioned that if tariff-related costs escalate, consumers would bear the brunt. He further highlighted that a 50% tariff would render the import of Volvo’s most budget-friendly electric vehicle, the EX30, from Belgium into the U.S. market unfeasible.
