President Donald Trump takes questions from reporters on the tarmac in Morristown, New Jersey.
Luxurious automaker Volvo is slashing 3,000 jobs, representing about 15% of the corporate’s office-based workforce.
The announcement made Monday says essentially the most impacted positions are in Sweden. The principally white-collar job cuts are a part of the corporate’s “not too long ago launched price and money motion plan,” in line with a media launch.
The layoffs come because the Swedish automaker tries to resurrect its plummeting share value and drum up higher demand for its vehicles by restructuring a part of its enterprise and reducing prices.
“The automotive business is in the midst of a difficult interval,” Håkan Samuelsson, Volvo Automobiles President and CEO, mentioned in an announcement. “To handle this, we should enhance our money stream era and structurally decrease our prices. On the similar time, we’ll proceed to make sure the event of the expertise we want for our formidable future.”
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A Volvo brand is pictured in Brussels, Belgium March 4, 2024. (Yves Herman/File Photograph / Reuters)
With most of its manufacturing based mostly in Europe and China, Volvo Automobiles is extra uncovered to new U.S. tariffs than lots of its European rivals, and has mentioned it might change into inconceivable to export its most inexpensive vehicles to the U.S.
On Friday, President Donald Trump threatened to impose a 50% tariff on imports from the European Union from June 1, however on Monday he backed away from that date, restoring a July 9 deadline to permit for talks between Washington and Brussels.
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Volvo electrical automobile is being exhibited on the All the pieces Electrical, the Dwelling Vitality & Electrical Car Present, in London, Britain, April 16, 2025. (Maja Smiejkowska / Reuters)
A brand of Volvo is seen inside a automobile seller in Nijmegen, Netherlands February 26, 2025. (Piroschka van de Wouw/File Photograph / Reuters)
Volvo Automobiles’ shares had been up 3.6% by Monday, Reuters reported, with many of the rise coming earlier than the layoff announcement. They’re nonetheless down 24% year-to-date.
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In 2024, Volvo had over 44,000 staff globally, in line with Reuters. Roughly 20,000 had been white-collar employees. The automaker expects to incur a one-time restructuring price of 1.5 billion crowns.
Reuters contributed to this report.
