New Delhi: Volvo Cars AB the highly celebrated Swedish automaker has said that it plans to cut around 3000 jobs worldwide. The company says that it is part of a major cost-cutting plan. The cutting down of these 3000 jobs will affect about 7% of the total workforce which includes 1000 consultants. This was announced by Volvo Cars AB on Monday May 26. Currently Volvo employs about 43800 people of which more than half are based in Sweden. Volvo said that around 1200 employee-held positions will be cut from its Swedish operations. The remaining job reductions would take place in various global markets with most cuts targeting office roles. Håkan Samuelsson the president and CEO of Volvo Cars acknowledged that these decisions were difficult but necessary. “Volvo Cars has initiated negotiations with the relevant labour unions and will issue a notice for these office-based positions to the Swedish Public Employment Service (Arbetsförmedlingen) today” said Volvo. According to Volvo Cars the exact number of reductions in other countries will be determined following a full organisational review as the company aims to complete these structural changes by autumn 2025. “The actions announced today have been difficult decisions but they are important steps as we build a stronger and even more resilient Volvo Cars. The automotive industry is in the middle of a challenging period. To address this we must improve our cash flow generation and structurally lower our costs” said Håkan Samuelsson President and CEO of the company. Volvo Cars owned by China’s Geely Holding reported a sharp drop in earnings for the first quarter of 2025 as its operating profit fell to 1.9 billion Swedish kronor from 4.7 billion kronor in the same period last year. Volvo has confirmed that it will no longer issue financial forecasts for 2025 and 2026. Volvo Car AB trading as Volvo Cars is a Swedish multinational manufacturer of luxury vehicles.