Volvo announces 2,500 job cuts amid competition from China and US tariffs

Volvo has said it will cut 2,500 jobs as it aims to ‘navigate a very tough environment’.

The Swedish brand saw deliveries fall 11 per cent and revenues drop 23 per cent from July to September, citing a ‘deteriorating external environment’ that included ‘hypercompetition’ from China and legislative changes in the US.

Announced as part of its Q3 financial report, the brand is looking to save an additional SEK 5 billion (circa £3.7bn) through the reduction of 2,500 jobs globally, of which 2,000 are based in Volvo’s native Sweden. It’ll do this, it says, by ending consultant contracts and through ‘targeted exit strategies to employees’.

Volvo says that it is also redoubling its efforts to introduce new models, with a planned 13 new cars to be launched between now and 2030. Next year, it will launch three new cars, with one made for Europe and two introduced as China-specific models.

Håkan Samuelsson, president and CEO, said: “We continue to operate in a very tough environment with strong external challenges: de-globalisation, hypercompetition and climate change. We are convinced that we have the right long-term strategy addressing these challenges

“However, in the short term, with severely challenged volumes, we need to reinforce our turnaround plan with additional decisive actions, lowering our break-even point and improving cash flows to make us more resilient.”

Volvo said that Europe remained one of the strongest areas of its operation, particularly in the case of electric cars. In all, EVs accounted for 45 per cent of its sales in the region, helping to bolster performance.