Volvo Cars, based in Sweden, is going to layoff 3,000 employees globally. These layoffs are the part of a cost-cutting program as the automotive industry faces challenges from trade tensions and resulting economic uncertainty.

The company announced Monday that approximately 1,200 jobs in Sweden would be cut, along with 1,000 consultant positions, mostly in Sweden, which would also be eliminated. Other global markets will be impacted by the remaining job cuts. An internal memo of the company says, “Most of the reductions will affect white collar, office-based roles in Sweden.”

“The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars,” said the company’s CEO and President, Håkan Samuelsson.

“The automotive industry is in the middle of a challenging period. To address this, we must improve our cash flow generation and structurally lower our costs,” he added.

What Else Do We Know?

Globally, carmakers are facing challenges, including rising raw material costs, a slumping European market, and US President Donald Trump imposing 25% tariffs on imported cars and steel.

Volvo Cars is headquartered in Gothenburg, Sweden. The company’s main product development offices are also located here. Furthermore, the company manufactures cars and SUVs in Belgium, South Carolina (USA), and China.

Volvo is now a subsidiary of China’s Geely, and has around 42,600 full-time employees.