Already at the end of April, the company and the new old CEO Håkan Samuelsson announced a gigantic savings package of 18 billion would be launched. Now it is clear how it will affect the company's employees:
We have made the tough decision to also work with reductions. It affects salaried employees who work at our offices, of which 1,200 are salaried employees in Sweden and the rest globally. It does not affect our factories, says Hanna Fager.
Of the 3,000 salaried positions, 1,000 are consultants, most of whom work at the Swedish operation. So, it's a total of almost 2,000 salaried positions in Sweden.
Adapting
In total, it's about 15 percent of the company's total office-based workforce globally. According to Hanna Fager, it's one of the larger reductions historically that Volvo Cars has had to make and reduces the workforce to the same level as 2012.
Is there a risk that you will need to prepare for further layoffs during 2025?
We have now set our strategic priorities and goals and are adapting to a more changing world. We see that we are preparing for a strong future, even if we will continue with employment stops.
Volvo Cars has struggled in strong headwinds in recent years. The company, which has chosen to focus on the electric car market, has been hit by the recession, rising interest rates, and even a price war on the Chinese market, among other things. Earlier this year, it was announced that CEO Jim Rowan would leave and he has since been replaced by Håkan Samuelsson.
"The automotive industry is in a challenging period. To handle this, we must improve our cash flow generation and structurally reduce our costs," writes Håkan Samuelsson in a press release.
Great concern
From a trade union perspective, in the form of the Swedish Association of Engineers, one expresses great concern about having to undergo another round of layoffs.
In total, the savings package will cost Volvo Cars up to 1.5 billion kronor in a one-time item. This cost will affect the company's financial results for the second quarter of 2025.
