Volvo to Lay Off 1,300 Employees at Swedish Headquarters... Announces Additional Global Workforce Reductions

Swedish automaker Volvo announced on the 4th (local time) that it will cut 1,300 office workers in Sweden to reduce costs.

According to AFP, Jim Rowan, Volvo's Chief Executive Officer (CEO), stated in a press release that "the cost-cutting measures implemented last year have started to show results, but more actions are needed."

Swedish Volvo Cars [Photo by Yonhap News]

The 1,300 employees represent 6% of the workforce at Volvo's Swedish headquarters. It is reported that Volvo has already notified 1,100 employees of their layoffs.

CEO Rowan said that while this round of layoffs is limited to Sweden, further cost-cutting measures may follow across global branches.

He added, "Economic headwinds, rising costs, and intensified competition are expected to continue threatening our industry for the foreseeable future," and "Over the coming months, we will implement measures worldwide to reduce costs and improve efficiency."

Earlier, Volvo announced at the end of last month that its first-quarter sales increased by 29% year-on-year to 12.47 trillion won, but net profit decreased by 11% year-on-year to 513.9 billion won.

In response, Volvo said it is considering additional measures related to cost reduction.

Meanwhile, Volvo plans to switch 100% of its production models to electric vehicles by 2030. It was revealed that one out of every five cars Volvo sold in the first quarter was an electric vehicle.

This content was produced with the assistance of AI translation services.