The Western Journal

Volvo to cut 3,000 jobs as company feels effect of tariffs

Swedish automaker Volvo recently announced a plan to lay off 3,000 employees, which is approximately 15% of its workforce. This decision comes in the wake of tariffs on foreign automobiles announced by president Trump, prompting Volvo to restructure a leaner organization. The layoffs include 1,200 office-based employees and 1,000 consultants in Sweden, alongside 800 from its global workforce. The company emphasizes that these structural changes are essential for achieving long-term profitable growth and improving efficiency. Earlier this month, Volvo also cut 5% of its workforce at its Charleston, South Carolina factory to adapt to challenging market conditions. Other automakers are similarly adjusting their strategies in response to the tariffs.


Volvo to cut 3,000 jobs as company feels effect of tariffs

Swedish automaker Volvo unveiled its plan to lay off 3,000 employees Monday after President Donald Trump announced tariffs on foreign automobiles last month.

The layoffs are part of Volvo’s attempt to become a “leaner, more efficient organization.” It is terminating 1,200 office-based employees in Sweden, 1,000 consultants in Sweden, and the remaining 800 from its worldwide workforce. Altogether, these layoffs represent 15% of its staff.

“These structural changes are necessary for Volvo Cars to deliver on its long-term strategy, strengthening its foundations for profitable growth,” the company said in a press release Monday.

Earlier this month, Volvo terminated 5% of its Charleston, South Carolina, factory workforce.

“This is in response to challenging macro conditions. Our aim is to support impacted employees and protect as many jobs as possible,” the company told the Washington Examiner at the time. “Volvo Cars remains committed to its long-term future in the US and is balancing investments with the need to reduce costs and improve efficiency.”

Similarly, Stellantis said it was planning to pause operations at assembly plants in Canada and Mexico and lay off 900 employees.

GM CEO SAYS SHIFT BACK TO US STARTED BEFORE AUTO TARIFFS

Meanwhile, other automakers have opted to change their strategies to avoid the tariffs imposed by Trump on foreign automobiles. Honda plans to manufacture its Civic Hybrid in the United States after the initial plan was to operate in Mexico. Hyundai‘s Georgia plant will increase production by 67% rather than produce more outside of the country.

American companies have begun decreasing their dependence on foreign parts. General Motors CEO Mary Barra said less than 3% of the company’s car parts come from China.



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