Volvo Cars announced Monday that it would cut 3,000 jobs globally, primarily affecting office positions in Sweden, citing ongoing uncertainty caused by President Donald Trump's tariffs impacting the automotive market, The Hill reported.
The Sweden-based automaker described the layoffs as part of its "cost and cash action plan," aimed at building resilience amid significant external challenges in the industry. The reductions amount to about 15% of Volvo's global office-based workforce.
"These structural changes are necessary for Volvo Cars to deliver on its long-term strategy, strengthening its foundations for profitable growth," the company stated.
According to Volvo, around 1,200 employee-held positions and approximately 1,000 consultant roles in Sweden will be eliminated, with additional cuts occurring in other markets. The exact numbers will be finalized following a complete organizational review.
"The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars," said Volvo Cars President and CEO Håkan Samuelsson.
"The automotive industry is in the middle of a challenging period; to address this, we must improve our cash flow generation and structurally lower our costs."
Earlier this month, Trump reduced planned tariffs of 25% on imported automobiles and auto parts, setting a phased approach for implementation. Initially threatened with heavy tariffs, auto parts will now face individualized higher rates, but Trump provided manufacturers options for price offsets to encourage domestic production. The offsets are 15% in the first year, dropping to 10% in the second year, and completely phased out by the third.
The United Auto Workers union supported Trump's tariffs, highlighting the benefits of protecting U.S. workers and domestic industry. Despite this backing, the automotive sector remains financially strained from increased tariff costs.
Treasury Secretary Scott Bessent indicated that Trump may reduce tariffs on countries negotiating in "good faith" but warned that reciprocal tariffs could resume for nations that do not meet U.S. trade expectations after a 90-day review period initiated earlier this year.
Trump's administration initially set a standard 10% tariff rate for most imports, excluding countries like China, Canada, and Mexico, whose tariff rates have fluctuated.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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