- The automaker recently announced it is cutting 15 percent of its global workforce.
- Volvo says cuts will save it the equivalent of $1.87 billion, helping to offset tariff costs.
- There are also plans in place to utilize its plant in South Carolina more efficiently.
Volvo’s U.S. sales have grown 6 percent so far this year, reaching 64,680 units by midyear. Even with that upward trend, the company is taking a cautious turn, announcing plans to cut around 15 percent of its local commercial workforce in an effort to reduce expenses and brace for potential instability.
Read: Volvo Laying Off Hundreds Of US Workers Over Tariff Fallout
On the surface, the job cuts seem to be happening at an inopportune time. Volvo has several new models in its line-up, including the all-electric EX90 and ES90. However, it’s been revealed that most of the workers affected by these cuts were hired during the pandemic, and some cuts were made through attrition.
Jobs Cut at U.S. Headquarters
Citing an unnamed sourced within Volvo, , approximately 60 jobs have also been eliminated, with most of these positions located at the company’s headquarters in New Jersey. According to Volvo, it “is taking measures to become a leaner, more efficient organization with a structurally lower cost base.” The company added this “will better position us to build a profitable … future for the Americas region and for Volvo Cars overall.”
It’s not just in the US where Volvo is reducing its workforce, Auto News reports that the company is looking to slash 15 percent of its global workforce, or roughly 3,000 jobs. The majority of these will be in Sweden and come in part due to President Donald Trump’s tariffs.
Approximately 90 percent of all vehicles Volvo sells in the US are imported, and to offset the costs of these tariffs, it plans to save the equivalent of $1.87 billion.
Other Layoffs
In April, Volvo announced that it would lay off roughly 800 workers across its US operations, impacting factories in Dublin, Virginia, and Hagerstown, Maryland, as well as its Mack Trucks plant in Macungie, Pennsylvania.
At the same time, Volvo is reportedly looking to make better use of its Ridgeville, South Carolina plant. Just 20,000 vehicles were produced there last year, representing only 13 percent of the facility’s total capacity. To boost output, the company is considering adding XC60 production to the site.
