Sweden-based Volvo Cars announced this week that it will eliminate around 3,000 jobs worldwide — another sign that Trump’s trade war is rattling the global auto industry.
The layoffs announced Monday are part of a SEK 18 billion (approximately $1.88 billion USD) action plan to bolster the company’s long-term profitability “with a structurally lower cost base.”
“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 Håkan Samuelsson, Volvo Cars President and CEO.
Samuelsson said the industry is “in the middle of a challenging period” and that “to address this, we must improve our cash flow generation and structurally lower our costs.”
The layoffs are mostly affecting office-based jobs in Sweden, the company said, including around 1,200 employees and another 1,000 consultants. The remaining cuts will be in other countries, but Volvo hasn’t specified where.
Volvo, which is owned by the China’s Geely, said it hopes to complete the restructuring by fall. While headquartered in Sweden, it also makes cars in the U.S., Belgium, and China.