FRANKFURT, Germany — Sweden-based Volvo Vehicles is eliminating 3,000 positions as a part of a cost-cutting program because the automotive trade faces challenges from commerce tensions and ensuing financial uncertainty.
The corporate mentioned Monday that round 1,200 of the job reductions would come amongst staff in Sweden, with one other 1,000 positions presently stuffed by consultants, largely in Sweden, additionally slated for elimination.
The remainder of the job losses could be in different world markets. Many of the jobs being reduce are workplace positions.
“The actions introduced at the moment have been tough choices, however they’re essential steps as we construct a stronger and much more resilient Volvo Vehicles,” mentioned Håkan Samuelsson, Volvo Vehicles president and CEO.
“The automotive trade is in the course of a difficult interval. To handle this, we should enhance our money circulate era and structurally decrease our prices.”
The corporate, owned by China’s Geely, has 42,600 full-time workers.
Carmakers world wide are dealing with a number of headwinds, amongst them greater prices for uncooked supplies, a diminished European automobile market, and U.S. President Donald Trump’s imposition of 25% tariffs on imported automobiles and metal.
Volvo Vehicles has its primary headquarters and product growth workplaces in Gothenburg, Sweden, and makes automobiles and SUVs in Belgium, South Carolina and China.