Volvo Cars announces 3,000 job cuts and shifts EV strategy

Volvo Cars has announced a $1.9 billion restructuring plan in response to declining demand in key markets, including China and the United States. As part of these cost-cutting measures, the company will cut approximately 3,000 jobs, primarily affecting office positions in Sweden, which represent about 15% of its office workforce.

In addition to the layoffs, the automaker has implemented a global hiring freeze for office roles and is adopting a more restrictive approach to external spending.

Furthermore, Volvo is shifting its long-term product strategy. The company has abandoned its 2021 goal of selling only fully electric vehicles by 2030. Citing changing market conditions and uncertainties caused by recent electric vehicle tariffs, Volvo now expects to continue selling hybrid vehicles through that period.