The measures will save five billion kronor.
"In total, these measures entail a structural reduction of approximately 2,500 positions globally, of which around 2,000 in Sweden, through the termination of consulting contracts, natural attrition and targeted severance packages for employees," Volvo Cars writes.
The savings package is the second announced in a short time. In 2025, around 3,000 jobs were cut, including around 2,000 in Sweden.
Big loss
During the quarter, the company posted an operating loss of SEK 5.6 billion, compared with a profit of SEK 6.4 billion a year earlier. Revenue fell from SEK 86.4 billion to SEK 66.9 billion.
"We continue to operate in a very challenging environment with significant external challenges: deglobalization, hyper-competition and climate change. We are convinced that we have the right long-term strategy to meet these challenges," CEO Håkan Samuelsson says in the press release.
"In the short term, however, with volumes still under severe pressure, we need a strengthened turnaround plan with further strong measures that lower our break-even level and improve cash flow to make us more resilient," he adds.
Shares this year
The Gothenburg-based carmaker has production facilities in Gothenburg, Ghent, Belgium, South Carolina, USA, and several locations in China.
Research, development and design take place in Gothenburg and Shanghai.
Shares in Volvo Cars, whose majority owner is the Chinese automotive conglomerate Zhejiang Geely Holding Group, have plummeted by just over 50 percent on the Stockholm Stock Exchange since the start of the year.