Volvo Group to Lay Off 3,000 Employees, Majority Are White-Collar Workers

On May 27, China-Singapore Jingwei, citing Reuters, reported that Volvo Group announced plans to lay off 3,000 employees, most of whom are white-collar workers. This move is part of the company’s previously announced restructuring plan, as it responds to rising costs, weakening electric vehicle demand, and ongoing trade uncertainties.

The layoffs come as the Swedish automaker seeks to restructure segments of its business and reduce expenses to help revive its declining stock price and stimulate automotive demand.

In April, Volvo Group disclosed its intention to cut SEK 18 billion (approximately USD 1.9 billion) in costs, which includes a significant reduction in white-collar staff. CEO Håkan Samuelsson stated, “There are white-collar roles in almost every function, including R&D, communications, and HR. Most of the layoffs are white-collar and involve substantial reductions. I believe this is a healthy step that will save costs.”

CFO Fredrik Håkansson noted that while all departments and regions would be affected, most layoffs will occur in Gothenburg. “The layoffs are tailored to improve structural efficiency. The effects may differ by region, but there is nothing inappropriate,” he said.

According to the company, the layoffs represent approximately 15% of its total office workforce and will result in a one-time restructuring cost of SEK 1.5 billion. Volvo stated that the new organizational structure will be completed before autumn.

ING analyst Hampes Engelao commented that the scale of the layoffs is within expectations and that the streamlining efforts are viewed positively. Last month, Volvo Group withdrew its financial guidance, citing weakened consumer confidence and global market volatility caused by trade tariffs, making the market environment unpredictable.