A Volvo’s booth at the Guangzhou Auto Show in November, 2024. Credit: Volvo
Sweden-founded carmaker Volvo Cars has begun the layoff process at its research and development center in Shanghai as part of a wave of 3,000 job cuts it announced in May, making it the latest international automaker to reduce its workforce on the back of declining sales in China. One-on-one meetings about departures started last week and the layoffs are affecting research, engineering, and supply chain management functions at Volvo’s Shanghai office, accounting for between 10% and 70% of certain teams, sources told Chinese media outlet Jiemian on Monday. Volvo, owned by China’s Geely Holding, earlier this year announced an 18 billion Swedish kronor ($1.9 billion) cost-cutting plan and said around 3,000 employees would be let go, with a focus mainly on office-based positions in Sweden and representing 15% of its white collar workfoce. Volvo is not alone, as Reuters reported in February that Mercedes-Benz also plans to let go 10-15% of its sales and finance staff in China by 2027. [Reuters, Jiemian, in Chinese]
