Volvo trims workforce, eyes $1.87 billion in cost savings
The Swedish brand has made a difficult decision regarding employees at its factory in Charleston, South Carolina.
Volvo Cars announced that it will implement changes in production and lay off 5% of the workforce at the Charleston factory in response to changing market conditions and evolving trade policies.
A spokesperson for Volvo Cars, quoted by "Reuters," explained that the layoffs will affect 125 out of the 2,500 employees. The brand emphasizes its commitment to a long-term future in the USA but must balance investments and costs.
A few days ago, on April 29, Volvo announced a cost reduction program that aims to achieve savings of $1.87 billion and secure the company during this difficult period. The Swedish brand, like many manufacturers, is struggling with weakening demand and increasing trade tensions, related to rising competition and political turmoil.
On April 1, Hakan Samuelsson returned to the position of head of Volvo, having led the company from 2012–2022. Samuelsson prefers a more flexible approach to electrification issues than his predecessor, Jim Rowan, as he does not completely rule out combustion engines.
