Volvo Cars to cut 3,000 jobs in restructuring
[STOCKHOLM] Sweden-based Volvo Cars said on Monday (May 26) it will cut 3,000 mostly white-collar jobs as part of a restructuring announced last month as it grapples with high costs, a slowdown in electric vehicle demand and uncertainty over trade tariffs.
Volvo Cars, which is majority-owned by China's Geely Holding, on Apr 29 unveiled a programme to slash costs by 18 billion Swedish kronor (S$2.4 billion) and hit the brakes on investments, warning that redundancies were inevitable.
In the first quarter, the auto maker had 43,500 full-time employees and 3,000 staffing agency personnel, according to its earnings report.
Volvo Cars said in a statement the reductions will primarily affect office-based positions in Sweden and represent around 15 per cent of the total office-based workforce globally.
'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,' CEO Hakan Samuelsson said.
As the group announced its cost cuts last month it also withdrew its financial guidance, pointing to unpredictable markets amid weaker consumer confidence and trade tariffs causing turmoil in the global auto industry.
On Friday US President Donald Trump threatened to impose a 50 per cent tariff on imports from the European Union from Jun 1, but on Monday he backed away from that date, restoring a July nine deadline to allow for talks between Washington and Brussels.
Samuelsson on Friday told Reuters customers would pay a big part of any tariff-related cost increases, and that a 50 per cent levy could make it impossible to import one of its most affordable cars, the Belgium-made EX30 electric vehicle, to the US. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
15 minutes ago
- Straits Times
Canada's Carney and Trump hold secret talks on framework trade and security deal: Report
Canadian Prime Minister Mark Carney (left) visiting US President Donald Trump at the White House in May 2025. PHOTO: REUTERS Canada's Carney and Trump hold secret talks on framework trade and security deal: Report OTTAWA - Canadian Prime Minister Mark Carney is secretly holding direct talks with US President Donald Trump to work out a framework for a trade and security agreement, the Globe and Mail reported on June 5. The talks between the leaders and top Cabinet ministers are being held discreetly to ensure a positive outcome, the report said, citing the US Ambassador to Canada Pete Hoekstra. The talks include Canadian Trade Minister Dominic LeBlanc and US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, the newspaper said, adding that a deal could be reached before September. 'The indications that they are talking and in communications regularly is a clear indicator to me that both sides recognise the importance and the urgency of moving this forward,' Mr Hoekstra told the Globe and Mail. Mr Carney's office declined to comment and the US Embassy in Ottawa did not immediately respond to Reuters' request for comment. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
36 minutes ago
- Straits Times
Retrofitting Qatari jet as Air Force One for Trump to cost hundreds of millions of dollars, Air Force says
FILE PHOTO: The motorcade of U.S. President Donald Trump is parked next to a 12-year old Qatari-owned Boeing 747-8 that Trump was touring in West Palm Beach, Florida, U.S., February 15, 2025. REUTERS/Kevin Lamarque/File Photo Retrofitting Qatari jet as Air Force One for Trump to cost hundreds of millions of dollars, Air Force says WASHINGTON - It will cost hundreds of millions of dollars to retrofit a Qatari luxury Boeing 747 jetliner to fly as the new Air Force One, Air Force Secretary Troy Meink said on Thursday. Last month, the U.S. military accepted the gift from Qatar to transport U.S. President Donald Trump. Retrofitting the 13-year-old plane, which has a luxurious interior, will require significant security upgrades, communications improvements to prevent spies from listening in and the ability to fend off incoming missiles, experts say. "It's probably less than $400 million to retrofit that aircraft," Meink told lawmakers during a Congressional hearing. Democratic lawmakers have said it could cost more than $1 billion to retrofit the plane. Meink said a lot of those costs are ones the Air Force would have experienced anyway. "I think there has been a number thrown around, on the order of a billion dollars, but a lot of those costs associated with that are costs that we would've experienced anyway," he said, adding that this included buying additional platforms for training and spares. Legal experts have questioned the scope of laws relating to gifts from foreign governments that aim to thwart corruption and improper influence. Democrats have also sought to block the handover. Qatar has dismissed concerns about the aircraft deal. Trump has also shrugged off ethical concerns, saying it would be "stupid" not to accept the 747-8 jet. The Air Force One program has faced chronic delays over the last decade, with the delivery of two new 747-8s slated for 2027, three years behind the previous schedule. Trump toured the Qatari Boeing plane in February at a Florida airport. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
2 hours ago
- Straits Times
Canada's Carney and Trump hold secret talks on trade and security, Globe and Mail reports
U.S. President Donald Trump attends a meeting with German Chancellor Friedrich Merz (not pictured) at the White House in Washington, D.C., U.S., June 5, 2025. REUTERS/Kevin Lamarque Canada's Prime Minister Mark Carney meets with First Ministers to discuss various trade and policy issues at TCU Place in Saskatoon, Saskatchewan, Canada June 2, 2025. REUTERS/Nayan Sthankiya/File Photo Canada's Carney and Trump hold secret talks on trade and security, Globe and Mail reports Canadian Prime Minister Mark Carney is secretly holding direct talks with U.S. President Donald Trump to work out a framework for a trade and security agreement, the Globe and Mail reported on Thursday. The talks between the leaders and top cabinet ministers are being held discreetly to ensure a positive outcome, the report said, citing the U.S. Ambassador to Canada Pete Hoekstra. The talks include Canadian Trade Minister Dominic LeBlanc and U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, the newspaper said, adding that a deal could be reached before September. "The indications that they are talking and in communications regularly is a clear indicator to me that both sides recognize the importance and the urgency of moving this forward," Hoekstra told the Globe and Mail. Carney's office declined to comment and the U.S. Embassy in Ottawa did not immediately respond to Reuters' request for comment. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
