Volvo Cars is set to cut 3,000 jobs as part of a cost-reduction effort in response to mounting challenges in the global automotive industry, including trade tensions and economic uncertainty.
The company announced that about 1,200 of the affected positions are in Sweden, along with around 1,000 consultant roles—mostly also based in Sweden—that will be phased out. The remaining reductions will occur across other international markets, primarily impacting office-based roles.
“The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars,” said Håkan Samuelsson, Volvo Cars president and CEO.
“The automotive industry is in the middle of a challenging period. To address this, we must improve our cash flow generation and structurally lower our costs.”
Volvo Cars, owned by China’s Geely, currently employs around 42,600 full-time staff worldwide. The company is navigating a series of industry headwinds, including increased raw material costs, a shrinking European car market, and U.S. President Donald Trump’s imposition of 25% tariffs on imported vehicles and steel.
The automaker’s global operations include its headquarters and product development centers in Gothenburg, Sweden, as well as production facilities in Belgium, South Carolina, and China.
