Volvo owned by Chinese company to axe 3k jobs amid | Tech News
Volvo Cars has introduced it’s chopping round 3,000 jobs, with its chief government saying the industry is in a “challenging period”. US President Donald Trump‘s 25% tariffs on imported vehicles, growing supplies prices and gradual gross sales in Europe are all impacting the automotive industry.
The Sweden-based Volvo Cars, owned by Chinese company Geely Holding, mentioned it should “structurally lower costs” in response to the market tensions. The company says the layoffs will primarily affect office-based positions in Sweden, representing round 15% of its white collar workforce globally. Håkan Samuelsson, chief government of Volvo Cars, mentioned: “The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars.
“The automotive industry is within the center of a difficult period. To handle this, we should improve our money circulate era and structurally decrease our prices.”
Around 1,200 of the job reductions are likely to come among workers in Sweden the place Volvo Cars has its headquarters, The Mirror stories, whereas one other 1,000 positions at present stuffed by consultants, largely in Sweden, are additionally set to be axed.
The remaining redundancies shall be in different international markets, the company mentioned in a press release.
Staff at Volvo Cars’ main manufacturing plants in Sweden, Belgium, China and the US should not believed to be affected by the cuts.
“The particular quantity of job reductions throughout all areas shall be decided over the approaching period, as soon as the company has finalised a review of its total organisation and decided a new structural set-up,” Volvo Cars said, adding it hopes to complete structural changes during the autumn.
Volvo Cars said it expects to incur a one-time restructuring cost of 1.5 billion Swedish kronor (around £115 million).
It comes after the company announced plans last month to cut costs by 18 billion kronor (approximately £1.4 billion).
The company’s global sales for April fell by 11% compared to the same period last year.
Volvo Cars, founded in Gothenburg, Sweden, in 1927, had round 42,600 full-time staff as of December 2024.
The car maker has plans for all of its automobiles to be electric by 2030.
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