Automotive giant to lay off another 3,000 employees
Swedish automotive manufacturer Volvo Cars plans to part ways with 3,000 employees as part of its cost-cutting strategy.
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Sweden-based Volvo Cars has announced that it will lay off 3,000 people to reduce costs due to slowing demand for electric vehicles and uncertainties regarding trade tariffs. The company is taking this step within the framework of a restructuring plan announced last month.
Volvo Cars, which is majority-owned by China's Geely Holding, announced on April 29 that it had launched a program aimed at reducing costs by 18 billion Swedish kronor (approximately 1.9 billion dollars) and slowing down investments. It was stated that layoffs were inevitable within this scope.
Volvo Cars was operating with 43,500 full-time employees in the first quarter of the year.
VOLVO TRUCKS ALSO CONTINUES LAYOFFS
The Volvo Group is continuing layoffs not only in passenger car production but also in heavy vehicle production. Volvo Trucks North America has announced plans to lay off another 350 workers at its New River Valley plant in Virginia. Company spokesperson Janie Coley informed employees that June 27 would be their last day of work. Coley stated that the decline in heavy-duty truck orders and trade tariffs made the layoffs necessary.
Previously, it was announced that 250-350 employees would be laid off at the Mack Trucks Lehigh Valley facility in Pennsylvania, and 50-100 employees at the Hagerstown Powertrain factory in Maryland. The Volvo Group has a total of 7,900 employees at these three facilities.