Volvo Reveals Plans to Slash 3000 Jobs
(MENAFN) On Monday, Swedish car manufacturer Volvo Cars revealed plans to eliminate 3,000 positions as part of a comprehensive "cost and cash action plan."
According to a company statement, "The action plan aims to build a stronger and even more resilient Volvo Cars at a time when the automotive industry is facing considerable challenges in its external environment."
This initiative, valued at 18 billion Swedish kronor (roughly USD1.89 billion), focuses on streamlining the organization to achieve a leaner structure with a permanently reduced cost base. The workforce reduction of 3,000 roles will mostly impact office staff in Sweden and accounts for about 15% of Volvo’s worldwide employees.
Volvo stressed that "These structural changes are necessary for Volvo Cars to deliver on its long-term strategy, strengthening its foundations for profitable growth."
CEO Hakan Samuelsson stated: “The automotive industry is in the middle of a challenging period. To address this, we must improve our cash flow generation and structurally lower our costs. At the same time, we will continue to ensure the development of the talent we need for our ambitious future.”
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