Electric-powered Volvo XC40 cars are seen at the Auto Zurich Car Show 2022 in Zurich, Switzerland November 10, 2022. Photo by Reuters/Arnd Wiegmann
Chinese-owned Volvo Cars of Sweden said Thursday that it would cut 1,300 white-collar positions in Sweden in an effort to cut costs and warned that global cost-cutting measures were to come.
CEO Jim Rowan said in a statement that cost-cutting measures taken last year had started to “bear results” but “it’s clear that we need to do more.”
“Economic headwinds, increased raw material prices and increased competition are likely to remain a challenge to our industry for some time,” Rowan said.
The office job cuts represent around six percent of its employees in Sweden, the company said.
While Thursday’s announcement concerns only Sweden, the company said it “will reduce costs and drive efficiencies across its global operations over the coming months.”
In late April, the carmaker reported a drop in first-quarter profits — despite higher sales — and said it was “evaluating the need for further targeted cost actions.”
It had reported a 10 percent increase in vehicles sold to some 162,900, and a 29% increase in revenue to 95.7 billion kronor ($9.3 billion).
But the company’s net profit fell to 3.98 billion kronor from 4.5 billion a year earlier.
The carmaker, which aims to become 100 percent electric by 2030, also said that one in five cars sold in the first quarter had been electric.
