Sweden-Based Volvo Cutting 3,000 Jobs to Reduce Costs

Sweden-based Volvo Cars is eliminating 3,000 positions as part of a cost-cutting program amid challenges in the automotive industry stemming from trade tensions and economic uncertainty, the Associated Press (AP) reported.

Volvo Cars is owned by China’s Geely. Photo: Volvo Facebook

The company said that about 1,200 of the job reductions will come from its workforce in Sweden, while another 1,000 positions—primarily consultant roles, also mostly in Sweden—will be eliminated.

Most of the cuts will affect office positions.

“These actions have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars,” said Håkan Samuelsson, Volvo Cars President and CEO.

The company, owned by China’s Geely, employs 42,600 full-time workers.

Automakers worldwide are facing multiple headwinds, including higher raw material costs, a weakened European car market, and U.S. President Donald Trump’s 25% tariffs on imported cars and steel.

Volvo Cars has its main headquarters and product development offices in Gothenburg, Sweden, and manufactures cars and SUVs in Belgium, South Carolina, and China.