Volvo Announces Massive Layoffs

Volvo has announced significant layoffs to stabilize its finances. The company has been forced to make radical cuts following a global decline in sales during the first half of 2025.

The moves are part of a global “cost and cash action plan,” and in the United States alone, 15 percent of commercial sector employees are being laid off.

Volvo has already cut about 60 jobs in the US, most of them at the company’s headquarters in New Jersey. A Volvo spokesman said the company is taking steps to become a “more agile and efficient organization with structurally lower costs,” which will allow it to have a “profitable future, both in America and globally.”

These measures are part of a wider restructuring plan worth $ 1.9 billion, announced at the end of May. The plan foresees the elimination of about 3,000 office jobs worldwide, which is approximately 15 percent of the total number of employees in the administration. The biggest cuts will hit Sweden, where 1,200 jobs will be cut, and contracts for 1,000 external associates will be cancelled. The rest of the layoffs were spread across other markets, including recent cuts in the US and downsizing in Shanghai.

In order to reverse the negative trends and “bring back the old glory,” Volvo recently rehired former CEO Håkan Samuelsson. Sales in Europe in June fell by 14 percent, and in China by 3 percent. In total, in the first half of the year, Volvo sold 353,780 vehicles, which is a decrease of 9 percent compared to the same period in 2024.

The decision to make mass layoffs comes as a surprise given that Volvo, owned by Chinese conglomerate Geely, had a record business last year. The company achieved the highest operating profit in its history of 2.8 billion dollars, with record revenues and 763,389 vehicles sold worldwide.

However, the report for the first quarter of 2025 already indicated a reversal. Revenues and operating profit fell, with profits down from $493 million to $200 million. The management cited the “current turbulence in the world economy” and the strategic decision to reduce the stock of vehicles from last year as reasons.

At the end of last year, Volvo Cars had 42,600 full-time employees in its offices, research centers, and factories in Sweden, Belgium, the USA, and China. The company is expected to announce its financial results for the second quarter on July 17, when the extent of the financial difficulties that management is warning about will become clearer.

• Also See: Due To Import Taxes, Volvo Automobiles Reduces Expenses And Employment