# Volvo Cars to axe 1,300 jobs as it steps up cost cuts
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-05-04
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Volvo Cars announces axe of 1,300 jobs in Sweden for cost cuts
Meta Description: Volvo Cars to lay off 1,300 employees in Sweden to increase cost efficiency amid economic challenges. CEO Jim Rowan emphasises the need for further measures to
URL: https://financedigest.com/volvo-cars-to-axe-1300-jobs-as-it-steps-up-cost-cutshtml

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COPENHAGEN (Reuters) -Volvo Cars will lay off around 1,300 office-based employees in Sweden as it steps up cost cutting, the Sweden-based auto maker said on Thursday.

While an earlier efficiency drive had begun to show results, more was needed, CEO Jim Rowan said in a statement.

“Economic headwinds, increased raw material prices and increased competition are likely to remain a challenge to our industry for some time,” he said.

The 1,300 positions equate to 6% of [Volvo Cars’](https://www.financedigest.com/volvo-cars-q4-profit-lags-forecasts.html "Volvo Cars Q4 profit lags forecasts") workforce in Sweden.

Rowan told Reuters the [group did not yet know how much it would save from the new measures](https://www.financedigest.com/havas-media-group-partners-with-lumen-research-to-measure-and-optimise-attention-at-global-scale.html "Havas Media Group Partners with Lumen Research to Measure and Optimise Attention at Global Scale"). “We’re still working the details through on that,” he said in an interview.

The company said it had issued redundancy notices for 1,100 employees, while the remaining 200 white-collar positions would be identified following a review of the [business across](https://www.financedigest.com/eliminating-financial-leaks-across-your-business.html "Eliminating financial leaks across your business") Sweden.

It said it also expected to [cut jobs](https://www.financedigest.com/ericsson-to-cut-1400-jobs-in-sweden.html "Ericsson to cut 1,400 jobs in Sweden") and reduce costs across its global operations in the coming months, including its consultancies.

Rowan said he could not yet specify where those [jobs would be cut](https://www.financedigest.com/telecom-italia-in-talks-with-unions-on-up-to-2000-job-cuts-in-italy.html "Telecom Italia in talks with unions on up to 2,000 job cuts in Italy"), but that focus would primarily remain on office-based positions.

We sell in over 80 countries or so worldwide, so I think there’s opportunities for us to become more [efficient across](https://www.financedigest.com/demand-for-energy-efficient-and-advanced-fairway-mowers-to-be-witnessed-across-europe.html "Demand for Energy-efficient and Advanced Fairway Mowers to Be Witnessed across Europe") the entire network,” he told Reuters.

Volvo [Cars shares](https://www.financedigest.com/credit-agricole-is-weighing-foray-into-german-car-sharing-media-report.html "Credit Agricole is weighing foray into German car-sharing: media report") were down 3.87% at 0848 GMT.

(Reporting by Louise Breusch Rasmussen Eediting by Terje Solsvik and Mark Potter)


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