What’s going on at Volvo Cars?
Volvo Cars is undertaking a sweeping restructuring, announcing it will cut 3,000 mostly white-collar jobs globally as it faces mounting cost pressures, softening electric vehicle (EV) demand, and growing trade uncertainty.
- The layoffs represent around 15% of Volvo Cars’ office staff, the company confirmed Monday.
- Cuts will affect nearly all departments – including R&D, communications, and HR – with a heavy concentration in Gothenburg, Sweden, the company’s headquarters.
The move is part of a broader effort to slash costs by 18 billion SEK ($2.5 billion CAD), revealed in April.
“It’s white collar in almost all areas… So it’s everywhere, and it’s a considerable reduction,” said returning CEO Håkan Samuelsson, who resumed the role this year.
Leadership shakeup and strategic shift
Samuelsson, who led Volvo Cars from 2012–2022, was brought back to steer the company through its financial challenges and weak stock performance.
- New CFO Fredrik Hansson emphasized the comprehensive nature of the cuts: “No stone is left unturned… It’s tailored to make us structurally more efficient.”
- The company said it aims to finalize a new organizational structure by autumn 2025.
Next steps for Volvo Cars employees
If you’re fired or let go from Volvo Cars, understanding your legal rights is crucial.
Non-unionized employees in Canada are entitled to severance pay. The amount you’re owed is based on a variety of factors, including your role, tenure, age, and ability to find similar work.
WATCH: Employment lawyer Lior Samfiru delves into severance pay on an episode of the Employment Law Show.
Here’s what you need to know:
- Compensation: Severance packages, which can be as much as 24 months’ pay, may include salary, bonuses, commissions, and other forms of compensation. Use our firm’s free Severance Pay Calculator to better understand your entitlements.
- Deadlines: You generally have up to two years from the date of your termination to review and negotiate severance offers.
- Action steps: Consult an employment lawyer at Samfiru Tumarkin LLP to ensure your severance package is fair and aligns with Canadian employment laws.
Lost your job at Volvo Cars? Contact us
If you’ve been fired or let go from Volvo Cars, the experienced employment law team at Samfiru Tumarkin LLP can help.
Our lawyers in Ontario, Alberta, and B.C. have helped tens of thousands of non-unionized individuals resolve their workplace issues.
Call us today at 1-855-821-5900 or request a consultation online.
⛔ UNIONIZED? You must consult your union representative regarding termination, severance pay, and other workplace issues. These matters are governed by your collective bargaining agreement. By law, employment lawyers can’t represent unionized employees with these issues.
