Frankfurt, Germany — Sweden-based Volvocar is eliminating 3,000 positions as part of its cost-cutting programme as the automotive industry faces challenges from trade tensions and the resulting economic uncertainty.
The company said Monday that around 1,200 jobs have been cut among Swedish workers, and that the current position of 1,000 has been met by Swedish consultants and is scheduled for exclusion.
The rest of the unemployment occurs in other global markets. Most of the jobs that have been cut are in office positions.
“The actions announced today were difficult decisions, but they are important steps to build Volvo cars that are stronger and more resilient,” said Håkan Samuelsson, president and CEO of Volvo Car.
“The automotive industry is in the middle of a difficult period. To address this, we need to improve cash flow generation and structurally reduce costs.”
The company, owned by Geely in China, has 42,600 full-time employees.
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Automakers around the world face several headwinds. Among them, the cost of raw materials is high, the European auto market is declining, and President Donald Trump has imposed a 25% tariff on imported cars and steel.
Volvocar has its main headquarters and product development offices in Gothenburg, Sweden, and manufactures cars and SUVs in Belgium, South Carolina and China.
