Volvo Cars, based in Sweden, is eliminating 3,000 positions as part of a cost reduction program as the automotive industry faces challenges of commercial tensions and the resulting economic uncertainty.
The company said Monday that around 1,200 of the work reductions would come among workers in Sweden, with another 1,000 positions occupied by consultants, mainly in Sweden, also scheduled to eliminate.
The rest of employment losses would be in other global markets. Most of the work that is cut are office positions.
“The actions announced today have been difficult decisions, but they are important steps since we build a stronger and even more resistant volvo cars,” said Håkan Samuelsson, president and CEO of Volvo Cars.
“The automotive industry is in the midst of a difficult period. To address this, we must improve our generation of cash flow and structurally reduce our costs.”
The company, owned by Geely in China, has 42,600 full -time employees.
Automobile manufacturers around the world face several winds against, including greater costs for raw materials, a decreased European car market and the imposition of the president of the United States, Donald Trump, 25% of tariffs in imported cars and steel.
Volvo Cars has its main headquarters and product development offices in Gothenburg, Sweden, and manufactures cars and SUV in Belgium, South Carolina and China.
