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May 4, 2020

Volvo Cars is Committing to Long-Term Plans, Cuts 1,300 Jobs to Make It Happen

Despite a recent survey detailing that consumer confidence in EVs and autonomous driving is dropping, Volvo Cars is still pushing ahead with their business transformation plans in a bid to cement their long-term growth.

Volvo still aims to transform its business and center it around online, electrification, autonomous drive, and new mobility models. And while the company has invested and grown substantially in these areas, it now aims to reduce in non-focus areas to support further growth longer-term. This includes the reduction of 1,300 jobs at its Swedish operations.

The move aims to make Volvo Cars more agile, reducing hierarchies that are slowing down decision-making and execution.

The Swedish carmaker says that the realignment was really part of the company’s long-term ambitions, but the COVID-19 pandemic has simply accelerated the measures.

“The coronavirus pandemic is affecting us in the short term, but we expect volumes and growth to return,” says Hanna Fager, Volvo’s head of People Experience. “So we need to continue investing in our ongoing transformation and new business areas, by reducing structural costs.”

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