Volvo Cars said Friday it plans to cut about 2,500 jobs, including some 2,000 in Sweden, as it seeks to save 5 billion kronor a year to improve profitability¹.

The company said the reductions would come by cancelling consultant agreements, not replacing people who retire, and making redundancies¹. Finance director Fredrik Hansson told TT the cuts would go through voluntary redundancies and tight limits on new hires, without specifying the mix¹. He said most of the Swedish cuts would be in the Gothenburg area and would involve white-collar workers rather than production jobs¹.

Over the last three months, Volvo Cars posted an operating loss of 5.6 billion kronor, compared with a profit of 6.4 billion kronor in the same period a year earlier, The Local Sweden reported¹.

The Local Sweden also noted that AB Volvo, a separate truck maker, reported stronger results in the same period, with CEO Martin Lundstedt citing cost pressure from conflicts and uncertainty over tariffs and trade policy¹.