Volvo, the car manufacturer, will reduce around 3,000 positions as part of its cost-savings measures.
The majority of redundancies will likely be in Sweden where the company has its headquarters. Around 15% of the company’s white-collar staff will be affected.
Around 1,000 positions will be laid off, with 1,200 being in Sweden. The remaining 800 are from the global markets.
Geely Holding, the Chinese parent company of the company, announced last month that it had a “plan” worth PS1.4 billion to restructure its business.
Hakan Samuelsson, the chairman and CEO of Volvo Cars, said in a statement that the restructuring would make Volvo Cars “stronger and more resilient”.
The automotive industry is going through a difficult time. In order to address this issue, we need to improve our cash generation and lower our costs structurally.
“At the Same Time, We Will Continue to Ensure the Development of Talents Needed for Our Ambitious Future.”
Volvo is among a number car manufacturers who have reacted to the imposition on tariffs for car imports in the US. President Donald Trump announced recently a 25% tax on all imported light trucks and passenger cars, as well as certain parts.
Nissan has announced that it will cut 15% of its global workforce.
A UK-US Agreement on Tariffs was agreed at the beginning of May, reducing car export tariffs from 27,5% to 10%, saving thousands of jobs in the UK automotive industry.
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