Overview

• Volvo launched a SEK 18 bn ($1.9 bn) cost and cash action plan in April to bolster resilience against rising expenses and trade uncertainties.
• The company will eliminate about 3,000 mostly office-based positions globally, representing roughly 15% of its office workforce, including around 1,200 employee and 1,000 consultant roles in Sweden.
• Volvo expects a one-time restructuring charge of up to SEK 1.5 bn ($157 m), which will depress second-quarter results and begin to affect earnings from Q4 2025 into 2026.
• The cuts respond to higher raw-material costs, slower electric-vehicle sales and uncertainty over US tariffs on imported cars and steel.
• Volvo plans to complete the restructuring by autumn 2025 and will provide further details at its July 17 earnings conference call.