automotive

Automotive Industry Layoffs Storm, Volvo Cuts 3,000 Workers

The storm of layoffs in the automotive industry continues. Volvo Cars, a Swedish automotive company owned by Geely China, announced the layoffs of 3,000 workers globally. 

Volvo Cars' move to lay off workers is part of a cost efficiency program carried out following industry challenges due to international trade tensions and global economic uncertainty. 

In its official statement on Monday (5/26/2025), quoted from AP, Volvo said that around 1,200 positions that were cut came from permanent workers in Sweden. In addition, around 1,000 consultant positions, most of which are also based in Sweden, will be eliminated. The rest will occur in other global markets. 

"This decision is very difficult, but important to strengthen Volvo Cars' resilience and competitiveness going forward," said Volvo Cars President and CEO Hakan Samuelsson. 

"The automotive industry is currently in a very challenging period. We must improve cash flow and cut costs structurally in order to survive and grow," he added. 

Volvo currently has around 42,600 full-time employees worldwide. Volvo Cars has its headquarters and product development facilities in Gothenburg, Sweden. Vehicle and SUV production is carried out in Belgium, South Carolina (USA), and China. 

Global automotive companies are facing various pressures, such as rising raw material prices, declining car sales in the European market, and the imposition of a 25% import tariff by US President Donald Trump on foreign cars and steel. These various things make it impossible for Volvo Cars to avoid layoffs. 

Tag: Automotive Industry Industry Volvo Cars