Volvo Cars to Cut 3,000 Jobs Amid Cost Pressures and Trade Uncertainty
Work News | New Stardom
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Sweden’s Volvo Cars will cut 3,000 mostly white-collar jobs, roughly 15% of its office workforce, as part of a cost-cutting plan launched last month. The company cites rising operational costs, softening electric vehicle demand, and mounting trade pressures as the key drivers behind the move.
Most of the affected roles are based in Sweden, with the remainder spread across the company’s global operations. In addition to employee layoffs, Volvo Cars will also reduce approximately 1,000 consultant roles, bringing the total number of job reductions to over 4,000.
Volvo is owned by China’s Geely Holding and has positioned itself as a leader in the transition to electric vehicles. However, the company said last month it was dropping its near-term goal of selling only EVs, citing market volatility and the need for flexibility in strategy.
Trade Risks Add Pressure
The company’s restructuring comes at a tense moment for the global car industry. On Friday, U.S. President Donald Trump threatened to impose 50% tariffs on EU auto imports starting June 1. Although the threat was softened over the weekend and pushed back to July 9 after discussions with EU Commission President Ursula von der Leyen, the uncertainty has already rattled markets.
Volvo, which is more exposed than some of its European peers to U.S. tariffs, withdrew its 2025–2026 financial guidance last month, citing trade policy risks and broader supply chain challenges.
“The automotive industry is in the middle of a challenging period,” said Volvo Cars CEO Håkan Samuelsson in a statement. “We must improve our cash flow generation and structurally lower our costs.”
The company said the cuts are part of its ongoing strategy to stay financially resilient while continuing to invest in long-term electrification goals.
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