Volvo Reveals Cutting Jobs in Cost-Reduction Plan
(MENAFN) Swedish car manufacturer Volvo Cars revealed on Monday that it plans to eliminate 3,000 positions as part of its new "cost and cash action plan."
According to an official statement from the company, "The action plan aims to build a stronger and even more resilient Volvo Cars at a time when the automotive industry is facing considerable challenges in its external environment."
The initiative, valued at 18 billion Swedish kronor (around USD1.89 billion), focuses on establishing a more streamlined and effective organizational structure with a permanently reduced cost base.
This restructuring is expected to lead to the termination of 3,000 jobs.
Most of the job cuts will impact administrative roles within Sweden and will account for roughly 15 percent of Volvo's worldwide workforce.
The company stressed, "These structural changes are necessary for Volvo Cars to deliver on its long-term strategy, strengthening its foundations for profitable growth."
Volvo’s CEO Hakan Samuelsson commented, “The automotive industry is in the middle of a challenging period. To address this, we must improve our cash flow generation and structurally lower our costs. At the same time, we will continue to ensure the development of the talent we need for our ambitious future.”
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