Volvo announces cut of 3,000 jobs after drop in demand for electric vehicles (Aaron Doucett – Unsplash)
The Volvo company has announced a layoff plan that will affect about three thousand employees, mainly in Sweden, but also in other regions where the company operates.
This cut corresponds to 15% of the automaker’s global workforce and is part of a strategy to save about $1.8 billion. The reduction in staff comes after a drop in demand for electric vehicles, a segment in which Volvo had promised to fully focus by 2030.
Volvo’s CEO, Håkan Samuelsson, highlighted that the automotive industry is facing significant challenges in its external environment, requiring measures to improve cash flow and cut structural costs.
The company’s restructuring will have an estimated cost of $150 million, with the financial impact expected to appear in the second quarter of 2025 and extend through 2026.
Additionally, a bill in the United States, passed by the Republican-controlled House of Representatives, threatens to remove important subsidies for electric vehicles, such as tax credits for purchase and production, incentives for installing charging stations, and benefits for battery mining and manufacturing. The proposal also includes an annual fee for electric car owners, representing a significant setback for the sector if signed into law by President Donald Trump.
Source: Olhar Digital | Photo: Unsplash | This content was created with the help of AI and reviewed by the editorial team
