Volvo Cars announced a sweeping round of global redundancies on Wednesday as part of its SEK 18 billion cost and cash action plan aimed at bolstering resilience in the face of ongoing challenges in the global automotive industry.
The restructuring will see approximately 3,000 positions eliminated worldwide, including around 1,000 consultant roles and 1,200 employee-held positions in Sweden, with the remainder to be reduced across international operations. The job cuts represent about 15% of the company’s total office-based workforce, with a significant impact on Volvo’s Swedish operations, particularly its Gothenburg headquarters.
The action plan is designed to create a leaner, more efficient organizational structure and ensure a structurally lower cost base, as the company continues to transition toward becoming a fully electric car manufacturer.
“These have been difficult decisions, but they are essential as we build a stronger and even more resilient Volvo Cars,” said Håkan Samuelsson, President and CEO of Volvo Cars. “We must improve our cash flow and structurally lower our costs to navigate through this challenging period in the industry.”
Negotiations with relevant labor unions have begun, and official notices have been issued to the Swedish labour market authority, Arbetsförmedlingen. The company aims to complete these structural changes by autumn 2025.
Volvo Cars expects to incur a one-time restructuring cost of up to SEK 1.5 billion, which will impact its financial results in Q2 2025. The financial effects of the restructuring are projected to be realized from Q4 2025 and into 2026.
Despite the job cuts, Volvo reaffirmed its commitment to innovation and electrification, positioning itself as a market leader in the rapidly growing EV segment.
This latest move underscores the growing pressures faced by legacy automakers as they adapt to shifting consumer demands, rising operational costs, and an increasingly competitive electric vehicle market.
