The restructuring plan was proposed by Volvo CEO Hakan Samuelsson. He had the leading role in the company for about 10 years when he decided to step back in 2022. But only after 3 years, Hakan Samuelsson returned to lead the Volvo car company, with new ideas to revive all the company’s operations. So, with his restructuring plan, the CEO plans to cut costs by $1.8 billion, including significant layoffs of white-collar workers.
"It's a white-collar job in almost all areas, including R&D, communication, and human resources. So it's everywhere, and it's a considerable reduction.", Volvo CEO Hakan Samuelsson stated.
Even more so, the new CFO from Volvo made a statement for Reuters in which he admits that even if all the company’s departments and locations will be somehow affected by the Volvo layoffs, most of the job cuts will be in Gothenburg, Sweden.
"It's tailored to make us structurally more efficient, and then how that plays out might vary a bit depending on the area. But no stone is left unturned,", the new CFO stated. According to the company, these 3,000 Volvo layoffs represent about 15% of the overall office staff.
It is important to note that the Volvo company is now affected by the recently imposed U.S. tariffs, mostly because the factories are based in Europe and China. So, soon the company may experiment with issues in exporting the affordable Volvo car into the U.S. territory.
It remains to be seen whether Volvo will be affected by the U.S. tariffs, because recently Donald Trump, the U.S. President, has threatened that will probably impose a 50% tariff on all imports that come from the European Union starting from the first of June. But, soon after, Donald Trump extended this deadline until July 9 to allow negotiations between the European Union leaders and Washington.
Stay tuned for more updates!
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