Volvo to slash 7% of workforce amid demand slowdown

Swedish automaker Volvo Car AB announced plans to reduce its global workforce by approximately 7 per cent as part of a broader effort to manage sluggish demand and protect its profit margins.

The company confirmed that roughly 3,000 positions will be eliminated, including about 1,000 consultant roles. Volvo currently employs around 43,800 people worldwide, with over half of its workforce based in Sweden, Caliber.Az reports via foreign media.

The restructuring is expected to incur costs of up to 1.5 billion Swedish kronor (approximately $140 million), which will impact the company’s second-quarter financial results. This move follows an 18 billion kronor ($1.7 billion) efficiency programme unveiled last month by CEO Hakan Samuelsson after Volvo reported a steep 60 per cent decline in operating income during the first quarter. The programme targets reductions in material costs, personnel expenses, and capital investments.

By Naila Huseynova