Volvo Cars has announced plans to slash approximately 3,000 jobs, primarily in Sweden, as part of a sweeping cost-cutting initiative aimed at strengthening its financial footing. 

The layoffs will affect about 15% of the automaker’s white-collar workforce, the company confirmed on Monday.

The decision is part of an 18 billion Swedish kronor ($1.9 billion) restructuring plan introduced last month by the Gothenburg-headquartered company, which has been owned by China’s Geely Holding Group since 2010.

Volvo CEO Jim Rowan described the decision as difficult but necessary in light of mounting industry-wide pressures. 

“We are navigating a period of significant transformation and external challenges. These actions are essential to position Volvo Cars for long-term resilience,” Rowan said in a statement.

The carmaker, which has major manufacturing facilities in Sweden, Belgium, China, and the United States, has faced a decline in global sales—down 11% in April compared to the same month last year. 

Rising production costs, weakening demand in Europe, and geopolitical tensions, including US tariffs on car imports under President Donald Trump’s administration, have further complicated the company’s outlook.

Volvo has also scaled back its ambitious plan to become an all-electric brand by 2030, citing global trade uncertainties and new tariffs on electric vehicles (EVs) in multiple markets.

Volvo’s announcement comes as other automakers face similar headwinds. 

Japanese firm Nissan recently revealed 11,000 additional job cuts and seven factory closures, while Chinese EV giant BYD sparked a price war by slashing prices on over 20 models. That prompted rivals like Changan and Leapmotor to announce their own discounts, triggering a market shake-up and sharp falls in Chinese automaker shares.

The latest developments underscore the fierce competition and economic strain reshaping the global auto industry.

Source: BBC

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