Volvo to cut 3,000 jobs as part of cost-cutting plans

Volvo to cut 3,000 jobs as part of cost-cutting plans

Volvo has announced plans to cut around 3,000 jobs globally as part of restructuring efforts in the face of high costs, a slowdown in electric vehicle demand and trade uncertainty.

“The action plan aims to build a stronger and even more resilient Volvo Cars at a time when the automotive industry is facing considerable challenges in its external environment. The SEK18 billion (about RM8 billion) action plan includes the creation of a leaner, more efficient organisation with a structurally lower cost base, which corresponds to an estimated reduction of around 3,000 positions, including consultants, at Volvo Cars’ operations around the globe,” the company said in its release.

Most of the job cuts will affect office-based positions in Sweden and will represent around 15% of the company’s total office-based workforce globally. Volvo said the estimated reduction in its Swedish operations will involve around 1,200 employee-held positions.

This figure makes up part of the approximately 3,000 redundancies planned, with the remainder being around 1,000 positions currently filled by consultants (most in Sweden) as well as in other global markets.

The company anticipates it will incur a one-time restructuring cost of up to SEK1.5 billion (RM665 million). This will affect its financial results for the second quarter of 2025, with the effects realised from the fourth quarter of 2025 and into 2026. These job cuts come following another announced in April this year involving workers at the company’s facilities in the United States.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard's strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • got very much cheaper electric car brands from Chinaaaa

    Like or Dislike: Thumb up 8 Thumb down 2
  • Sabri on May 27, 2025 at 3:33 pm

    Meh Europeans are overpaid. Better to use better china workers.

    Like or Dislike: Thumb up 10 Thumb down 10
  • alldisc on May 27, 2025 at 5:07 pm

    Geely is facing problem not only with this Volvo but also Lotus.

    Soon.
    .
    .
    .
    .
    .
    .
    Proton.

    Like or Dislike: Thumb up 10 Thumb down 3
    • Logical Deduction on May 29, 2025 at 5:55 pm

      The common denominator having problem is… Geely

      Like or Dislike: Thumb up 2 Thumb down 0
  • EV & PHEV will bring Volvo to holland

    Like or Dislike: Thumb up 4 Thumb down 0
  • Suomi Automobile Union on May 27, 2025 at 6:47 pm

    It’s about time to utilise Boston Dynamics or Unitree AI bots as replacement of factory labourers

    Like or Dislike: Thumb up 2 Thumb down 0
  • seancorr on May 27, 2025 at 11:36 pm

    China affecting all players in the field. Buckle up or get steamed rolled by them.

    Like or Dislike: Thumb up 2 Thumb down 1
 

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