Dylan RobertsonVolvo Cars has announced a series of global job cuts, aiming to build resilience in a “challenging period” for the automotive industry.
Around 15% of Volvo Cars’ global office-based workforce will be made redundant, although most of the cuts will be concentrated within the firm’s Swedish operations.
2,200 jobs will be cut in Sweden, with 1,000 of those being consultants; the remaining 800 job cuts will be spread around the world.
As of late-2024, Volvo Cars’ workforce numbered 42,600 across Sweden, China, Belgium, and the US.
The job cuts are part of a near-£1.4bn action plan, which aims to create a more efficient and resilient company.
Håkan Samuelsson, CEO of Volvo Cars, said: “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.
“At the same time, we will continue to ensure the development of the talent we need for our ambitious future.”
The restructuring is set to cost around £116m, and will be complete by the end of 2025, following a review of the organisation.
2024 was a record year for Volvo Cars, with an all-time high operating profit of over £2bn, as well as record vehicle sales of 763,389.
Despite other brands cutting back on their EV targets, Volvo aims to only sell electric vehicles (EVs) and hybridised models by 2030, eventually transitioning to become an EV-only company.
This story first appeared on Motor Trade News.
