To cut costs and become more resilient, Volvo, the Swedish auto firm, is planning to trim its workforce by seven per cent. That means about 3,000 people from its 43,800-strong workforce will be rendered jobless, including 1,000 Sweden-based consultants.
It is pertinent to mention here that over 50 per cent of Volvo’s workforce is based in Sweden, and these job cuts will impact about 1,200 positions in the country. An exact official figure has not been revealed about the number of employees likely to be affected in other countries.
The objective of the layoff is to generate more cash flow and reduce expenditure to survive the slump that has affected the automotive sector worldwide.
The company is already consulting labour unions and a notice pertaining to the move is reportedly being issued to the Swedish Public Employment Service.
Owned by Geely Holding, a Chinese company, Volvo Cars witnessed a significant drop in revenues in Q1 of 2025.
In April this year, Volvo Group North America had informed employees of its intention to let go at least 550 people. It was reported that the job cuts would impact up to 800 people at its sites in Macungie, Pennsylvania, as well as Dublin, Virginia and Hagerstown, Maryland. The reason for the layoffs was the uncertain demand situation given the tariffs plan introduced by the US President, which is disrupting the trade system and is threatening to increase the manufacturing cost in the vehicles industry.
