Latest news with #HåkanSamuelsson
Yahoo
30-05-2025
- Automotive
- Yahoo
Volvo Cars slashing 3K jobs globally
This story was originally published on Automotive Dive. To receive daily news and insights, subscribe to our free daily Automotive Dive newsletter. Volvo Cars is eliminating around 3,000 jobs or roughly 15% of its global workforce as part of its strategy to reduce expenses by 18 billion Swedish kronor ($1.8 billion), the automaker announced Monday. The positions will mostly be office-based workers, including consultants from its global operations, a Volvo Cars spokesperson said in an email to Automotive Dive. A majority of the impacted jobs, about 2,200, will occur in the automaker's home country of Sweden, per the release. Håkan Samuelsson, Volvo Cars President and CEO said the actions by the company were difficult decisions but important steps to 'build a stronger and even more resilient Volvo Cars.' 'The automotive industry is in the middle of a challenging period,' Samuelsson said in a statement. 'To address this, we must improve our cash flow generation and structurally lower our costs.' Volvo expects the restructuring will impact the company's Q2 results and will cost up to 1.5 billion Swedish kronor ($156 million). However, the automaker said effects would be 'realised from the fourth quarter of 2025 and into 2026.' The company said it will share additional details during its quarterly earnings report on July 17. Production line jobs in the company's manufacturing operations are not affected at this stage, the spokesperson said. However, Volvo previously announced it was cutting 125 jobs or roughly 5% of its 2,500 workers at its Ridgeland, South Carolina factory. Recommended Reading Volvo may build a new plug-in hybrid in South Carolina Sign in to access your portfolio
Miami Herald
29-05-2025
- Automotive
- Miami Herald
Major carmaker cuts 15% of office staff amid tariff uncertainty
Do you remember when you bought your first car? I was ecstatic. It doesn't matter that it was a used car as old as me (and I was 22 at the time), that it would stall when driving through even a small puddle, and that there were all kinds of things not working properly. It was mine. And I bought it. With borrowed money, of course. Related: Ford files shocking $300 million RICO lawsuit A lot has changed since then, but I still love that car, and that brand - Škoda. Everyone has that one favorite car brand. They like it because of the performance, quality, reliability, and design. Brands with a reputation for durability and low maintenance tend to attract customers. People are known to get so attached to one specific car brand that they don't change. Ever. And when their favorite brand is having troubles, it matters. There's no doubt that these are not the best times for the automotive industry. May 2025 U.S. auto sales are expected to reach 1.47 million units, with a seasonally adjusted annual rate (SAAR) of 15.7 million, down from the 17.6 million average in March and April. While the numbers don't reveal any special concerns, S&P Global Mobility analyst Chris Hopson stressed that this may be "the last period this year to post positive growth," citing swirling tariff, consumer, and auto inventory conditions. World-renowned Swedish automaker Volvo Cars announced on May 26 global redundancies, as part of its recently launched cost and cash action plan. The SEK 18 billion (around $1.88 billion) plan includes a reduction of around 3,000 positions including consultants at Volvo Cars' operations around the globe. That's about 15% of the company's total office-based workforce globally. More Automotive: Tesla sales woes mount in Europe amid disappointing updateNissan planning a drastic move to save itself from financial ruinNew DOT rule could worsen trucker shortage, cause delivery delays These layoffs will include about 1,000 consultant positions and around 1,200 office-based positions mostly in Sweden, with the remainder in other countries. "The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars," stated CEO Håkan Samuelsson. "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." The restructuring efforts come at times when the "old-school" automaker is working on delivering its long-term plan to become a fully electric car company. In addition to high competition in the EV industry, Volvo is facing another challenge: U.S. tariff uncertainty. On May 23, President Trump, angered by the drag in the tariff negotiation with the European Union, threatened to raise the tariff rate to 50% starting June 1. However, on May 26, he backed off the threat, agreeing to extend a deadline to negotiate tariffs by more than a month. The popular carmaker, renowned for its focus on safety, makes most of its products in Europe and China, leaving it more exposed to new U.S. tariffs than many of its European competitors. Samuelsson said last week that its customers would have to pay a large portion of tariff-related costs increases, and if levies rise, it could become impractical to import one of its most affordable cars to the U.S., according to Reuters. More precisely, Samuelsson made it clear that a 50% tariff would make it impossible for Volvo to sell its Belgium-made EX30 electric vehicle in the U.S. Last month, Volvo also shared it will no longer provide financial guidance for 2024 and 2025, citing "external development and increased uncertainties." Related: Volvo may say goodbye to a beloved fan-favorite car The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
28-05-2025
- Automotive
- Yahoo
Volvo Cars to slash 3,000 workers amid global trade uncertainty
Sweden-based automaker Volvo Cars said it is eliminating 3,000 white-collar jobs at operations around the world as the automotive industry faces supply chain and tariff-related disruptions. The layoffs represent around 15% of Volvo Cars' office staff, with about 2,200 job losses expected to occur in Sweden and the rest in the company's global operations. Volvo Cars has not said where the other workforce reductions will take place. The job cuts announced Monday are part of a $1.88 billion action plan to bolster the company's long-term profitability, officials said.'The automotive industry is in the middle of a challenging period,' Håkan Samuelsson, president and CEO of Volvo Cars, said in a news release. 'To address this, we must improve our cash flow generation and structurally lower our costs.' Volvo Cars said the layoffs will be completed by the end of fall. As of the first quarter, the automaker had 42,600 full-time employees, with white-collar staff making up more than 40% of its workforce, according to its earnings report. Volvo Cars' head office, product development, marketing and administration functions are mainly located in company's car production plants are in Gothenburg; Ghent, Belgium; Charleston, South Carolina; and Chengdu, Daqing and Taizhou, China. The company also has research and development and design centers in Gothenburg and Shanghai. The latest round of layoffs comes after Volvo announced plans to eliminate 5% of its workforce, about 125 workers, at the Charleston factory, according to Reuters. The factory produces the company's EX90 SUV. Volvo Cars is majority-owned by China's Geely Holding. It was sold by Ford Motor Co. to Geely in 2010 for $1.8 billion. Volvo Cars and Volvo Trucks North America are separate entities. The post Volvo Cars to slash 3,000 workers amid global trade uncertainty appeared first on FreightWaves. Sign in to access your portfolio
Time of India
28-05-2025
- Automotive
- Time of India
Volvo to cut 3,000 white-collar jobs amid rising costs and EV market slowdown: Report
Source: Bloomberg News Volvo Cars, a well-known Swedish automobile manufacturer in the vanguard of safety features and technological advancements, is initiating a large-scale workforce overhaul amidst increasing economic and industry pressures. Volvo Cars intends to lay off approximately 3,000 mostly white-collar workers in the wake of increasing operational expenses, declining electric vehicle demand, and rising trade uncertainties, especially with regard to tariffs. This move is a strategy to regain financial health and business efficiency, as Volvo is faced with low share price and changing world market trends. The restructuring takes into consideration the company's determined effort to modify its business model for long-term competitiveness with an ever-growing complexity of the car industry. Volvo to cut 3,000 jobs amid EV slowdown Volvo Cars ( revealed on Monday that it would cut about 3,000 mostly white-collar jobs under a broad restructuring plan launched last month. The action is a strategic move in response to various urgent issues confronting the group, such as high operating expenses, slowing electric vehicle (EV) demand, and persistent trade uncertainty. The automaker's work force reduction program is meant to overcome these challenges while rejuvenating its heavily languished share price and enhancing demand for its product lineup. Through the streamlining of operations and cost reductions, Volvo hopes to position itself more effectively for long-term growth in an uncertain worldwide automobile market. Volvo CEO targets $1.9 billion in savings through sweeping white-collar job cuts Volvo Cars CEO Håkan Samuelsson, who took back his role after a temporary break, set out the cost-cutting initiative in April. The program aims for a total of 18 billion Swedish crowns ($1.9 billion) in cost savings. Much of that savings will be achieved from white-collar employee cuts, who make up about 40% of the company's total employees. Samuelsson highlighted the wide scope of the reduction in force, saying, "It's white collar to almost all functions, including R&D, communication, and human resources. So it's everywhere, and it's a considerable reduction." He also commented on the anticipated payoffs, saying that the restructuring will not only save costs but also provide ways for employees who remain to increase responsibility, thereby making organizations stronger and more efficient. Volvo CFO confirms job cuts will hit all divisions Volvo Cars' new Chief Financial Officer, Fredrik Hansson, gave more information, affirming that all departments and sites will be impacted, but the majority of job reductions will take place at the company's headquarters in Gothenburg, Sweden. Hansson characterized the restructuring as a thorough process for making Volvo organizationally more efficient, stating that the precise nature of the workforce adjustments will differ by area of business. These job cuts represent about 15% of its office staff, according to the company. The restructuring effort will cost about 1.5 billion Swedish crowns one-time. Volvo Cars has its main bases of operation in Europe and China, which makes it more sharply exposed to any new United States tariffs than most of its European rivals. The firm has indicated that rising US tariffs have the potential to undermine its prospects for exporting cheaper cars to the American market, thus limiting its growth prospects. The company's labor force breakdown demonstrates this international reach: in 2024, Volvo had about 29,000 employees in Europe, 10,000 in Asia, and 3,000 in the Americas. Volvo aims to finalise restructure by Autumn 2025 amid industry support The automaker intends to complete its new structure by autumn 2025. The industry experts in general have received the move positively as a step toward making operations more efficient. Handelsbanken analyst Hampus Engellau said that the extent of the job cuts is in line with market expectations and was positive on the restructuring. Volvo has pulled back its financial guidance due to uncertain market conditions characterized by falling consumer optimism and trade tensions that have shaken the world automotive industry. Also Read | India proposes new FASTag toll system with Rs 3,000 annual pass: What it is, pricing options and all you need to know Discover everything about the automotive world at Times of India .
New Indian Express
28-05-2025
- Automotive
- New Indian Express
Volvo Cars cutting 3,000 jobs to reduce costs
FRANKFURT, Germany: Sweden-based Volvo Cars is eliminating 3,000 positions as part of a cost-cutting program as the automotive industry faces challenges from trade tensions and resulting economic uncertainty. The company said Monday that around 1,200 of the job reductions would come among workers in Sweden, with another 1,000 positions currently filled by consultants, mostly in Sweden, also slated for elimination. The rest of the job losses would be in other global markets. Most of the jobs being cut are office positions. 'The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars,' said Håkan Samuelsson, Volvo Cars president and CEO. '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.' The company, owned by China's Geely, has 42,600 full-time employees. Carmakers around the world are facing several headwinds, among them higher costs for raw materials, a diminished European car market, and U.S. President Donald Trump's imposition of 25% tariffs on imported cars and steel. Volvo Cars has its main headquarters and product development offices in Gothenburg, Sweden, and makes cars and SUVs in Belgium, South Carolina and China.
