Volvo to cut 5% workforce at US plant amid market shifts
The Swedish brand made a difficult decision regarding employees at the factory in Charleston, South Carolina, USA.
Volvo Cars announced that it will implement changes in production and lay off 5% of the workforce at the Charleston factory in response to changing market conditions and evolving trade policies.
A spokesperson for Volvo Cars, quoted by "Reuters," explained that the layoffs will affect 125 out of the 2,500 employees. The brand emphasises that it remains committed to its long-term future in the USA, but must balance investments and costs.
A few days ago, on 29th April, Volvo announced a cost reduction programme, which aims to achieve savings of $1.87 (£1.4) billion and secure the company during this difficult period. The Swedish brand, like many manufacturers, is grappling with weakening demand and increasing trade tensions related to rising competition and political turmoil.
On 1st April, Håkan Samuelsson returned to the position of head of Volvo, having led the company from 2012 to 2022. Samuelsson prefers a more flexible approach to electrification issues than his predecessor, Jim Rowan, as he does not completely rule out combustion engines.
