Reductions will primarily affect administrative positions in Sweden – including about 1,200 full -time jobs and another 1000 jobs previously rendered by external consultants. Other exemptions will spread to other markets, including Europe, North America and Asia. The company does not inform at this stage whether people in Poland will also lose their work.
At the end of April this year. The company launched the “Cost & Cash Action Plan” program, assuming a reduction in expenditure by 18 billion sec (Swedish Crowns) and Strong investment limitation After the operational profit for the first quarter fell by 60 percent. up to 1.9 billion sec.
At the same time, Volvo Cars withdrew financial forecasts for 2025–2026citing growing commercial uncertainty and weakening consumer trust.
Changes in management – the return of Håkan Samuelsson to the position of president and the nomination of the new financial director Fredrik Hansson, are to accelerate restructuring. The company also counts on the support of the majority owner, Chinese Geely.
Volvo cuts full -time
The plan includes the liquidation of about 1,200 full -time jobs in the Swedish structures of Volvo Cars – mainly in Gothenburg, where the headquarters and most R&D, HR, communication and administration departments are located. In addition, the company will end cooperation with about 1000 consultants operating in Sweden.
Other positions will be reduced in offices on other continents, including Belgium, the United States and China, although the company emphasizes that The exemptions will be dispersed and will cover all divisions.
The one -off cost of restructuring was estimated at 1.5 billion sec, which will be included in the results of the second quarter.
Why is the company cuts off right now? Volvo cars feels A clear slowdown in the demand for electric cars. In January-April, the sale of BEV models dropped by 32 percent, pulling the results of the entire group down.
At the same time, the US administration threatens to introduce 50 % Customs duties on the import of cars from the European Union – the date of their possible entry into force was shifted to July 9. This is especially He hits Volvo, because they send a large part of his models to the United States from Europe.
On the cost side, record prices of battery and steel materials are reflected, as well as expenses related to the transformation of factories for the production of low -emission vehicles.
Trade unions talk about “an extremely difficult moment” and announce negotiations to limit the number of actual dismissals. They emphasize employees' concerns about the loss of key competences for the development of electromobility in the Gothenburg region.
In economic media, it is emphasized that Volvo Cars is the largest private employer in the country and his decisions will translate not only to the labor market, but also to the supply chain – from the suppliers of part after IT.
