Volvo to Cut 3,000 Jobs Amid Slowing EV Demand and Trade War Impact

Company: "For Cost Reduction Purposes"
Sweden Office Staff to Be Main Targets of Layoffs

Swedish automaker Volvo Cars is set to undergo restructuring by cutting 3,000 jobs in response to slowing electric vehicle demand and the impact of trade wars.

According to Bloomberg and CNBC, Volvo announced on May 26 (local time) that it will implement workforce reductions as part of cost-saving measures to address declining demand and protect company profits.

Volvo plans to reduce its workforce by about 3,000 employees, including around 1,000 consultants. This figure represents approximately 7% of Volvo's total workforce of about 43,800 employees as of April. In particular, office staff based in Sweden are expected to be the main targets of the layoffs.

Earlier, Volvo reported that its operating profit for the first quarter of this year had plummeted by 60% compared to the same period last year. In response, the company announced a cost reduction plan worth $1.9 billion, and the latest announcement details specific measures for this plan. At that time, Volvo withdrew its financial outlook for 2025 and 2026, citing tariff pressures on the automotive industry.

Bloomberg commented, "The measures announced last month were prepared by Volvo to stabilize management in the face of mounting trade barriers and imbalances in electric vehicle demand."

U.S. business media outlet CNBC also projected, "Uncertainty over trade tariffs is expected to have a significant impact on the automotive industry, which is highly globalized in terms of supply chains and heavily dependent on North American manufacturing."

Volvo CEO Hakan Samuelsson emphasized, "The measures announced today were difficult decisions, but they are an important step in building a stronger and more resilient Volvo Cars."

Meanwhile, Volvo, which had been proactive in its transition to electric vehicles, announced that it is withdrawing its short-term goal of selling only electric vehicles starting in September. At the time, the company cited changing market conditions and slowing demand, explaining that it "needs to be practical and flexible."