Volvo Car plans 2,500 job cuts to lower its break-even point

Volvo Car expects indirect spending almost 25% below 2024 levels by end of 2027

STOCKHOLM — Volvo Car said Friday that it will cut 2,500 jobs globally as part of an additional turnaround plan that targets over $500 million in cost savings.

Volvo Car, the Swedish carmaker, is majority-owned by China’s Zhejiang Geely Holding Group.

Volvo Car said Friday that the operating environment remains tough, with strong external challenges.

Volvo Car said its long-term strategy is on point, but more needs to be done in the short term.

“With severely challenged volumes, we need to reinforce our turnaround plan with additional decisive actions, lowering our break-even point and improving cash flows to make us more resilient,” Chief Executive Hakan Samuelsson said.

Volvo Car said the company plans to reduce costs by 5 billion Swedish kronor ($504.5 million) on top of earlier cost-saving measures, with the reduction to be achieved through the job cuts.

Of the 2,500 jobs to be cut globally, 2,000 are based in Sweden. Volvo Car said the Swedish reductions would come mainly through ending consultant contracts, natural attrition and targeted exit packages for employees.

Volvo Car said the full financial effects of the measures will be realized by the end of 2027. At that point, the company said its overall indirect spending will be almost 25% below 2024 levels.