Jobs Cut: Another company suddenly announced the layoff of 3000 people
Another big company of the world has announced the layoff of employees. Sweden’s leading auto company Volvo Cars announced that it is going to lay off about 3,000 employees as part of its global cost-cutting plan. This step is part of the company’s recently announced 18 billion Swedish Krona ($1.89 billion) “Cost and Cash Action Plan”.
Where will it have the biggest impact – The layoffs will mainly affect office-based staff in Sweden. The total cut will affect about 15% of the company’s office staff.
Volvo Cars CEO Hakan Samuelsson said in a statement that these decisions are difficult, but they are important steps towards making Volvo more strong and flexible.
The auto industry is currently going through a bad phase. In this situation, improving cash flow and reducing costs has become necessary.
Global Action Plan-Volvo Cars announced its action plan on April 29, which includes. Investment cuts, global layoffs, focus on cash flow. Maintaining strategic investment in digital and electric mobility.
Who is the owner company of Volvo-Volvo Cars is now under the control of China’s Geely Holding. Under Geely, Volvo has made a big investment in EV technology and software development in the last few years, but now the company is going into cost control mode. This layoff of Volvo Cars is part of the ongoing phase of difficulty and restructuring in the global auto industry. While the pace of EV change and digital transformation is fast, steps like cost control, investment cuts and strategic rebalancing are becoming necessary for companies.
