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The Swedish car brand is looking to cut almost $3 billion across its operations as it faces ‘external headwinds’.
Iconic Swedish car maker Volvo will axe jobs from its global workforce and said it would not provide ‘financial guidance’ for 2025 and 2026 amid increasing uncertainty in the global automotive business and slowing sales.
The car maker – whose parent company Geely also owns Lotus, Polestar and Zeekr – did not say how many jobs, where and what sort of roles would be targeted but said in a statement it planned to “come back with more details as soon as possible.”
As of December 2024, Volvo Cars reported it had around 42,600 employees globally.
A statement from the car maker announced the cuts as part of a drive to save 18 billion Swedish crown ($AU2.92 billion) as the brand looks to mount a turnaround in challenging conditions.
Despite record global sales of 763,398 vehicles in 2024, the car maker saw declines in the world’s largest volume countries, China and the United States, last year.
A six per cent-sales fall in the first three months of 2025 followed revenue declining almost 12 per cent from 93.9 Swedish crown ($AU15.2 billion) to 82.9 billion Swedish crown ($AU13.43 billion).
Volvo Cars Australia sales year-to-date are flat, with a meagre 0.8 per cent gain over 2024, but the brand has outperformed the market’s overall 4.6 per cent decline to the end of March.
The car maker remains committed to its previous goals, but reversed its decision to sell only electric cars by 2030 with its Australian arm recently pulling back on its previous ambition to go fully electric by 2026.
“The company’s long-term strategy, foundations for growth and path to improved profitability remain, and the accelerated cost and cash action plan has also been launched in order to further protect those elements,” a statement from Volvo said.
The first three months of 2025 have also seen increasing uncertainty given the ongoing tariffs between Europe – where Volvo saw its best sales in 2024 – the United States (US) and China.
Volvo manufactures cars in Europe, India and the US, but the global supply of its EX30 electric SUV kicking off in China meant it faced significant tariffs in both the US and Europe.
Production has begun in Belgium – at considerable cost – after the previous US administration applied 100 per cent tariffs on Chinese imports, however this still limits the EX30’s potential in the US.
A Cross Country EX30 is due in Australian showrooms in 2025, with the current EX30 range sold here made in China.
While steadfast on its electrification target, Volvo said it will use hybrid tech – increasingly popular in China, the US and Australia – as a ‘bridge’ for customers towards battery electric cars.
On 30 April 2025, Volvo confirmed a new SUV will be made in its South Carolina, US plant, a potential successor to the current Volvo XC60 or XC90 SUVs.
CEO Mr Hakan Samuelsson told Automotive News Europe, “[The US-made SUV] has to be a car with mild-hybrid and plug-in versions to really bring up the volumes.”
The decision was made despite Volvo also facing a potential complete sales ban in the US given its Chinese ownership.
Both China and the US remain the car maker’s priorities in the near-term.
“The automotive industry is in the middle of a very difficult period with challenges not seen before,” said Mr Samuelsson in a statement.
“Over the last few weeks, I have worked with the management team and other colleagues on a plan to make the company stronger and more resilient.”
Mr Samuelsson began his second stint in the top job in April 2025 replacing former Dyson boss Jim Rowan, with the company losing around two-thirds of its value since 2021, as reported by Automotive News.
One of his first moves was to replace the previous Chief Financial Officer, while a newly established ‘Americas’ region – covering the US, Canada and South America – will be led by former Volvo Latin America boss, Luis Rezende.
"While our strategy is clear, we must get better at delivering results. Given the turbulence in the market, we need to further improve our cash flow generation and lower our costs,” Samuelsson said.
"While we still have a lot to do, our direction going forward is focused on three areas: profitability, electrification and regionalisation.”
A more ‘regionalised’ approach will see further manufacturing shifts – with the EX30 a prime candidate to join US production – as well as localised models.
Planned US exports of a China-made S90 sedan have been cancelled, while Samuelsson suggested the car maker should maximise synergies with its parent company’s stable of brands.
Australian showrooms will also receive updated versions of the XC60 and XC90 SUVs, as well as the aforementioned EX30 SUV and ES90 large electric sedan by the end of 2025.
