Gothenburg, Sweden - Volvo Cars, the Swedish automotive manufacturer owned by China's Geely Holding, has announced plans to slash approximately 3,000 jobs, primarily targeting white-collar positions in Sweden. The move is part of a broader cost-cutting strategy in response to mounting global industry pressures.

The layoffs represent around 15% of Volvo's office-based workforce in the country, and come as the company rolls out an 18 billion SEK (approximately $1.9 billion) restructuring initiative designed to streamline operations.

Håkan Samuelsson, Chief Executive of Volvo Cars, described the cuts as a difficult but necessary response to an increasingly volatile global automotive landscape.

“The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars,” Samuelsson said.

The automaker, which has its global headquarters and R&D facilities in Gothenburg, operates production hubs across Sweden, Belgium, China, and the United States. Volvo was acquired from Ford by Geely in 2010.

April figures revealed that Volvo’s global sales had dropped by 11% compared to the same month last year, adding pressure on the company’s bottom line.

Volvo's ambition to go fully electric by 2030 has also been tempered. The company recently acknowledged delays due to market instability and new tariffs affecting EVs in key markets.

The job cuts at Volvo come as the broader auto industry contends with a slew of disruptions—from material cost surges and geopolitical tensions to shifting consumer demand and stiff competition in the electric vehicle market.

Elsewhere in the sector, Japanese manufacturer Nissan is undergoing its own dramatic overhaul, announcing 11,000 additional job cuts and seven factory closures in response to sluggish global sales.

Meanwhile, Chinese EV giant BYD has ignited a price war by slashing prices on over 20 models, dropping its lowest-priced Seagull EV to just 55,800 yuan (around $7,745). Rivals including Changan and Leapmotor, partly backed by Stellantis, quickly followed suit. The pricing moves sent shockwaves through Chinese auto stocks.

In a notable development, BYD also outsold Tesla in Europe for the first time this April, according to market data from Jato Dynamics—a sign of the fierce competition intensifying within the EV space.


By WafricNews Desk.