World News | Volvo Cars Cutting 3,000 Jobs to Reduce Costs

Frankfurt, May 26 (AP) Sweden-based Volvo Cars is eliminating 3,000 positions as part of a cost-cutting programme as the automotive industry faces challenges from trade tensions and resulting economic uncertainty.

The company said Monday that around 1,200 of the job reductions would come among workers in Sweden, with another 1,000 positions currently filled by consultants, mostly in Sweden, also slated for elimination.

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The rest of the job losses would be in other global markets. Most of the jobs being cut are office positions.

“The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars,” said Håkan Samuelsson, Volvo Cars president and CEO.

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“The automotive industry is in the middle of a challenging period. To address this, we must improve our cash flow generation and structurally lower our costs."

The company, owned by China's Geely, has 42,600 full-time employees.

Carmakers around the world are facing several headwinds, among them higher costs for raw materials, a diminished European car market, and US President Donald Trump's imposition of 25 per cent tariffs on imported cars and steel.

Volvo Cars has its main headquarters and product development offices in Gothenburg, Sweden, and makes cars and SUVs in Belgium, South Carolina and China. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)