Swedish carmaker Volvo, which is owned by China’s Geely, is cutting several hundred jobs, Swedish radio reported on Friday citing sources. Volvo confirmed it was reviewing staff and other costs to ensure its business had the “right skills” but declined to provide further details.
“As a growing company Volvo Cars is constantly reviewing its cost base. This becomes even more important in light of the headwinds the industry is facing and Volvo Cars is now increasing its focus on costs related to staffing and bought services,” the company said in an emailed statement.
The jobs primarily affected were those of consultants and staff involved in factory production will not be affected, a Volvo spokesman said. He declined to specify the number of job cuts and savings expected from the layoffs.
Volvo’s fortunes have come under renewed threat with the car sector facing one of its most challenging periods due to trade conflicts, large investments to develop electric and driverless cars, and an overall downturn in the industry.
Volvo, which is owned by China’s Geely, has postponed plans for a listing due to the tariff wars and auto stock downturn.
The automaker reported lower first-quarter profit last month and warned that margins will remain under pressure this year.