Mikael Sjberg | Bloomberg | Getty images
The automaker based in Sweden Volvo Cars on Monday said that it would reduce around 3,000 jobs as part of a major cost reduction training.
This decision comes after the company, which belongs to Geely Holding in China, announcement A Swedish cost plan of 18 billion kronor ($ 1.89 billion) and cash action at the end of last month.
Volvo Cars said the 3,000 job cuts would have an impact mainly on office positions in Sweden and would represent approximately 15% of the total workforce depending on the company.
“The actions announced today have been difficult decisions, but these are important stages because we build stronger and even more resilient Volvo cars,” said Håkan Samuelsson, President and CEO of Volvo Cars, in a statement.
“The automotive industry is in the midst of a difficult period. To remedy it, we must improve our generation of cash flows and structurally reduce our costs. At the same time, we will continue to ensure the development of the talent we need for our ambitious future,” said Samuelssson.
Within the framework of dismissals, the company said that it would reduce approximately 1,000 positions currently held by consultants, mainly in Sweden, around 1,200 employees in Sweden and others on other global markets.
When the action plan was launched on April 29, Volvo Cars said the program would include investment and redundancies in its operations around the world. The company has also withdrawn its financial guidelines for 2025 and 2026, invoking pricing pressure on the automotive sector.
Risks of trade war
The uncertainty about commercial prices should have a deep impact on the automotive industry, in particular given the high globalization of supply chains and high dependence on manufacturing operations across North America.
President Donald Trump on Friday threatened to impose prices of 50% on imports from the European Union from early June, incentive Europe’s automotive index falls strongly.
The American president has since watered down the threat, announcement On Sunday, he agreed to repel the deployment of import rights to import on July 9, After a call With the president of the EU Ursula von der Leyen commission.
The EU already faces 25% import prices in the United States on cars, steel and aluminum and so-called “reciprocal” prices of 10% for most other goods.
Volvo Cars said that the measures were necessary to ensure that it can carry out its long -term strategy, adding that it remains firm on its ambition to become a fully electric car business.
A leader in the transition of electric vehicles (EV), Volvo Cars announcement In September plans to lower its short -term objective to sell only electric vehicles, citing a need to be “pragmatic and flexible” in the midst of market conditions and cooling demand.
