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4w ago

Volvo Cars Cuts 3,000 Jobs and Reorients Toward Plug-In Hybrids

Volvo expects to save roughly €1.7 billion through the cuts to address weakening demand for pure electric vehicles.

Car Manufacturers In Canada EDMONTON, CANADA - OCTOBER 26, 2023: Volvo vehicles seen outside a Volvo dealership in Edmonton, on October 26, 2023, in Edmonton, Alberta, Canada. Edmonton Canada PUBLICATIONxNOTxINxFRA Copyright: xArturxWidakx originalFilename: widak-carmanuf231026_npPsZ.jpg
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Overview

  • Volvo Cars will cut around 3,000 administrative positions worldwide, representing about 15% of its global office staff, with most losses in Sweden.
  • Returning CEO Håkan Samuelsson unveiled the cuts as part of a plan to shave 18 billion SEK from operating costs and strengthen cash flow.
  • The company’s first-quarter 2025 revenue fell 12% to SEK 82.9 billion and its operating margin narrowed to 2.3%, underlining the urgent need for structural savings.
  • Slowing pure-EV adoption led to a drop in electric models’ share of sales to 19% in Q1, prompting a renewed focus on plug-in hybrid offerings.
  • Parent company Geely plans to consolidate vehicle platforms across its brands, with Volvo set to migrate to two modular architectures provided by Geely.