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Volvo Cars recently announced a significant global redundancy initiative as part of its comprehensive cost and cash action plan. This strategic move aims to fortify the company’s financial resilience and streamline its operations amidst a challenging automotive industry landscape. The plan, valued at SEK 18 billion, is designed to cultivate a more efficient organization with a structurally lower cost base, ultimately impacting approximately 3,000 positions worldwide, including both employees and consultants.
Key Highlights:
- Global Redundancies: Approximately 3,000 positions will be reduced globally, encompassing employees and consultants.
- Focus on Office Roles: Reductions primarily affect office-based positions, with a significant portion in Sweden.
- Sweden Impact: Around 1,200 employee positions in Sweden and approximately 1,000 consultant roles, mostly in Sweden, are affected.
- Long-Term Strategy: These changes are deemed necessary to achieve Volvo Cars’ long-term strategy and strengthen profitable growth.
- Electric Future Remains: The company remains steadfast in its ambition to become a fully electric car company, recognizing it as the fastest-growing market segment.
- Restructuring Costs: A one-time restructuring cost of up to SEK 1.5 billion is anticipated in the second quarter of 2025.
- Completion Goal: Volvo Cars aims to complete these structural changes by autumn 2025.
The job reductions will primarily impact office-based roles in Sweden, representing roughly 15 percent of the company’s total office-based workforce globally. Specifically, around 1,200 employee-held positions within Volvo Personvagnar AB (Swedish operations) are set to be reduced. Furthermore, approximately 1,000 positions currently filled by consultants, predominantly in Sweden, will also be affected. The remaining reductions will occur in other global markets, with the exact numbers to be determined after a thorough organizational review.
According to Håkan Samuelsson, Volvo Cars President and CEO, these difficult decisions are crucial steps toward building a stronger and more resilient organization. He emphasized the need to improve cash flow generation and structurally lower costs while continuing to develop the talent necessary for their ambitious future. Despite these changes, Volvo Cars remains committed to its long-term strategy of becoming a fully electric car company, a segment it leads in and which continues to be the fastest-growing in the market.
The company anticipates incurring a one-time restructuring cost of up to SEK 1.5 billion, which will be reflected in its financial results for the second quarter of 2025, with effects continuing into 2026. Further details are expected to be shared when the company presents its results on July 17. In 2024, Volvo Car Group reported a record-breaking core operating profit of SEK 27 billion, with revenue reaching an all-time high of SEK 400.2 billion and global sales hitting a record 763,389 cars.
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