Volvo Cars, the Sweden-based automotive brand owned by China's Geely Holding, is set to eliminate around 3,000 positions as part of a significant cost-cutting initiative. These job cuts, which represent approximately 15% of its white-collar workforce, will mainly affect office roles in Sweden. Last month, Volvo announced an extensive "action plan," which includes an 18 billion Swedish kronor (nearly $1.9 billion) investment to restructure the business.
The global motor industry is currently grappling with several predicaments, such as notable tariffs on imported vehicles set by the US government, soaring material costs, and declining sales in European markets. Volvo's CEO, Håkan Samuelsson, highlighted the industry's "challenging period" as a crucial factor in making the tough decision to downsize.
In April, Volvo reported an 11% fall in global sales compared to the previous year. The company operates out of its main headquarters and development facility in Gothenburg, Sweden, with major production plants in Belgium, China, and the US. Since its sale by Ford to Geely in 2010, Volvo has aimed for complete electrification of its lineup by 2030, although it has recently adjusted those goals due to trade-related uncertainties.
In related news, fellow Japanese car manufacturer Nissan announced the elimination of 11,000 jobs globally alongside the shutting down of seven factories due to poor sales performances, bringing its total layoffs to about 20,000 in the past year. Meanwhile, rival electric vehicle maker BYD has begun reducing prices across its models, intensifying competition in the Chinese car market.
The global motor industry is currently grappling with several predicaments, such as notable tariffs on imported vehicles set by the US government, soaring material costs, and declining sales in European markets. Volvo's CEO, Håkan Samuelsson, highlighted the industry's "challenging period" as a crucial factor in making the tough decision to downsize.
In April, Volvo reported an 11% fall in global sales compared to the previous year. The company operates out of its main headquarters and development facility in Gothenburg, Sweden, with major production plants in Belgium, China, and the US. Since its sale by Ford to Geely in 2010, Volvo has aimed for complete electrification of its lineup by 2030, although it has recently adjusted those goals due to trade-related uncertainties.
In related news, fellow Japanese car manufacturer Nissan announced the elimination of 11,000 jobs globally alongside the shutting down of seven factories due to poor sales performances, bringing its total layoffs to about 20,000 in the past year. Meanwhile, rival electric vehicle maker BYD has begun reducing prices across its models, intensifying competition in the Chinese car market.
