Swedish automaker Volvo has announced plans to reduce its global workforce by approximately 7%, affecting around 3,000 employees. The move is part of a broader cost-cutting strategy aimed at improving cash flow and enhancing the company’s resilience amid ongoing challenges in the global automotive sector.
Of the 3,000 roles being cut, about 1,000 are Sweden-based consultants. With over half of Volvo’s 43,800 employees located in Sweden, the job cuts will impact roughly 1,200 positions within the country. While an exact breakdown for other regions has not been disclosed, the company has begun consultations with labour unions and issued a formal notice to Sweden’s Public Employment Service.
Volvo, owned by China’s Geely Holding, has been grappling with declining revenues—particularly highlighted by a weak first quarter in 2025. The company’s efforts to restructure and trim costs come in response to shifting market dynamics and slowing demand across the automotive industry.
The workforce reduction follows earlier job cuts in April, when Volvo Group North America announced plans to lay off at least 550 employees. Those cuts affected operations in Macungie, Pennsylvania; Dublin, Virginia; and Hagerstown, Maryland, with up to 800 positions potentially impacted. The layoffs were attributed to demand uncertainty and rising manufacturing costs linked to new U.S. tariffs, which have disrupted global trade in the vehicle manufacturing sector.
As the auto industry continues to navigate economic headwinds and regulatory pressures, Volvo’s restructuring underscores the broader shift toward leaner operations and financial prudence.
