OR Volvo Cars Reduces about 15% of its commercial workforce in the US as Swedish automotive is preparing for adversity in the market.
Volvo Cars has announced global redundancies in the context of the recently launched cost and cash action plan. The action plan aims to build a stronger and even more durable Volvo Cars, at a time when the automotive industry is facing significant challenges in its outdoor environment, the Automotive News Europe reports.
The action plan of 18 billion Swedish crown includes the creation of a simpler, more effective organization with a structurally lower cost, which corresponds to an estimated Reduce about 3,000 jobsincluding consultants, in the activities of Volvo Cars around the world.
These reductions will mainly affect offices in Sweden and represent about 15% of the total workforce in offices worldwide.
These structural changes are necessary for Volvo Cars to implement its long -term strategy, reinforcing its foundations for profitable growth. Volvo Cars remain firm in its ambition to become a fully electric car companyas fully electricity is the fastest growing part of the market and Volvo Cars is a leader in this transition.
The estimated reduction in Swedish activities (Volvo Personvagnar AB) is about 1,200 employee positions. Volvo Cars has begun negotiations with the relevant labor unions.
In the context of about 3,000 layoffs, the company will reduce about 1,000 positions currently covered by consultants (most in Sweden) and, as mentioned, 1,200 employees in Sweden and others in other markets.
This number of job reductions in all areas will be determined in the coming period as soon as the company completes the revision of its entire organization and defines a new structural structure. Volvo Cars aims to complete structural changes during the autumn of 2025.
“The actions announced were difficult decisions, but they are important steps as we build a stronger and even more durable Volvo Cars,” said Håkan Samuelsson, President and CEO of Volvo Cars. “The automaker is in the middle of a difficult period. To tackle this problem, we need to improve the creation 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. “
As a result of today’s (11.7.2025) announcement, Volvo Cars expects to be charged a lump sum restructuring costs of up to $ 1.5 billion. This costs will affect the company’s financial results for the second quarter of 2025, with the impact being felt from the fourth quarter of 2025 to 2026. More details will be published when the company presents the results on Thursday (17.7.2025).
Volvo Cars announced worldwide sales of 62,858 cars in June, reduced by 12% compared to the same period last year. Total sales for the January – June period amounted to 353,780 cars worldwide, down 9% compared to the same period in 2024.
The company’s share of fully electric cars was 22% of all cars sold for the month. Sales of electric models-fully electric and plug-in hybrid models-declined by 19% Compared to the same period last year and represented 44% of all cars sold in June.
In Europe, Sales reached 31,547 cars in June, reduced by 14% compared to the same period last year. Sales of Volvo Cars electric models decreased by 21% compared to the same period last year and the share of electric models represented 60% of all cars sold in Europe in June. US sales decreased by 7% in June, reaching a total of 8,627 cars. Sales of electric models decreased by 4% compared to the same period last year.
Volvo Cars’ sales in China reached 13,569 cars, reduced by 3% compared to June 2024. Sales of electric models amounted to 1,068 cars, a 26% reduction compared to the same period last year.
In June, the Volvo XC60 was the model with the most sales with 20,706 cars (2024: 19,222), followed by the XC40/ex40, with total sales of 15,442 cars (2024: 16.195) and the XC90 with 8,842 cars (2024: 9.139).