Sweden's Volvo Cars to cut 3,000 jobs as part of major cost-cutting drive

Sweden-based automaker Volvo Cars on Monday said it would cut around 3,000 jobs as part of a major cost-cutting drive.

The move comes after the company, which is owned by China's Geely Holding, announced an 18 billion Swedish kronor ($1.89 billion) cost and cash action plan late last month.

Volvo Cars said the 3,000 job cuts would primarily impact office-based positions in Sweden and represent around 15% of the firm's total office-based workforce.

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

"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. At the same time, we will continue to ensure the development of the talent we need for our ambitious future," Samuelsson said.

When the action plan was launched on April 29, Volvo Cars said the program would include reductions in investments and redundancies at its operations across the globe.

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