Sweden’s Volvo Cars will cut about 3,000 jobs as a direct result of the 25% U.S. import tariffs on automobiles implemented by President Donald Trump.
Volvo Cars, one of Chinese automaker Geely’s owned brands, says the layoffs will mainly impact office-based positions in Sweden, representing about 15% of its white-collar workforce.
It is part of the company’s “action plan” announced last month to realize savings of 18 billion Swedish kronor ($1.9 billion), the BBC reports.
Referencing the U.S. tariffs, Volvo’s CEO, Håkan Samuelsson, points to the “challenging period” faced by the industry as a reason for the layoffs. “The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars,” he says in a company statement.
In April, the company reported global sales falling 11% compared to the same period last year.
