Volvo Cars to Cut 3,000 Jobs Amid Industry-Wide Struggles
Volvo Cars has announced plans to cut approximately 3,000 jobs, with most of the layoffs affecting office-based employees in Sweden. The move comes as part of a broader cost-cutting initiative designed to streamline operations in the face of mounting challenges across the global automotive industry.
The Sweden-headquartered carmaker, owned by China’s Geely Holding Group, said the cuts represent around 15% of its white-collar workforce in the country. The decision is part of an 18 billion Swedish kronor ($1.9 billion) restructuring plan announced last month.
Volvo CEO Jim Rowan described the current landscape as “a challenging period” for the industry, citing rising material costs, cooling demand in key markets, and ongoing geopolitical tensions – including tariffs on imported vehicles.
“These actions are difficult but necessary,” Rowan said in a statement. “They are critical steps toward building a leaner, more resilient Volvo Cars.”
The company recently reported an 11% drop in global sales for April compared to the same month last year, underscoring the pressure faced by automakers worldwide.
Volvo, which operates production facilities in Sweden, Belgium, China, and the United States, was acquired by Geely from U.S.-based Ford Motor Company in 2010. In recent years, the firm has pivoted heavily toward electrification, declaring in 2021 that it would transition to a fully electric lineup by 2030. However, that ambition has since been tempered by market volatility and rising tariffs on electric vehicles.
The job cuts at Volvo come amid a wave of downsizing across the auto sector. Earlier this month, Nissan announced it would slash 11,000 jobs and shut down seven factories due to declining sales in China and the U.S. The move brought its total job cuts over the past year to 20,000 – roughly 15% of its global workforce.
Meanwhile, competition in the electric vehicle space continues to intensify. Chinese EV leader BYD recently cut prices on more than 20 models, including its Seagull EV, now priced as low as 55,800 yuan ($7,745). The aggressive pricing has prompted similar moves from state-backed Changan and Leapmotor, the latter supported by Stellantis.
Shares of Chinese automakers have fallen sharply in response to the price war, which has further disrupted a sector already grappling with inflation, supply chain constraints, and shifting consumer preferences.
Industry analysts say more restructuring could lie ahead as legacy automakers and new entrants alike adjust to a rapidly evolving global market.
