Volvo Cars to cut 7% of global workforce amid cost pressures
3,000 roles to be eliminated globally as part of a sweeping cost-cutting plan; CEO pushes for greater efficiency under a wider restructuring effort.
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Volvo Car announced on Monday that will cut around 7% of its global workforce - approximately 3,000 positions - as part of an aggressive move to reduce costs and shore up profitability in the face of weak demand and escalating operational challenges, according to media reports.
The Swedish carmaker, which currently employs around 43,800 people worldwide, said the restructuring will include the elimination of 1,000 consultant roles and will primarily impact operations in Sweden, where more than half of its workforce is based. Around 1,200 direct employees in Sweden will be affected.
The company will incur restructuring charges of up to 1.5 billion Swedish kronor ($140 million) in the second quarter of 2025.
The job cuts are a part of a broader 18 billion kronor efficiency program led by CEO Hakan Samuelsson, who is under pressure to stabilize the automaker following a steep 60% drop in first-quarter operating income. The plan includes slashing material expenses, reducing personnel costs, and curbing investments.
Despite the grim announcement, Volvo’s stock jumped as much as 4.9% in Stockholm on Monday. Still, the shares have shed roughly 25% of their value this year amid global trade tensions, sluggish electric vehicle (EV) sales, and economic uncertainty, the report added.
Samuelsson, 74, rejected speculation that the restructuring signals a shift in power toward Volvo’s Chinese parent company, Zhejiang Geely Holding Group. He emphasized that the company will grant more autonomy to its China and US operations to better respond to local market dynamics.
As part of the overhaul, Volvo has also replaced its chief financial officer and is pursuing deeper synergies within the Geely group.
This marks Volvo’s most significant headcount reduction since 2023, when it warned of potential layoffs affecting 1,300 white-collar roles in Sweden. Eventually, about 700 positions were cut that year, the company confirmed in the media report.
