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The well-known Swedish brand Volvo announced a significant reduction in its workforce - more than 3 thousand jobs worldwide. The layoffs will affect engineers, IT workers, and marketers. Some departments will merge or switch to remote work. This decision was made due to the increase in the price of raw materials, as well as due to a decrease in interest in electric vehicles. Another reason for the decision is increased competition due to the appearance of Chinese brands on the market that sell electric car models at a more affordable price. Another reason for the crisis is the ever-growing trend of political instability. Volvo refused to publish any forecasts for the coming 2026, citing the unstable market situation. At the beginning of 2025, the company's profits fell by about 60%, compared to last year. But despite such a difficult situation, the company does not give up on its development. Volvo has invested in digital technologies and autonomous systems. One of the latest innovations was the integration of the Gemini assistant from Google into the car. This new voice assistant will help car owners to more easily manage navigation, access the necessary information and control the functions of the car. The technology will help make interaction with the car more comfortable and safe.
The organization claims that now this is a forced measure, which is aimed at maintaining competitiveness. Volvo plans to optimize production capacities and focus on profitable models. First of all, this concerns electric crossovers and new generation models, as well as the introduction of hybrid options. The manufacturer is still working on the development of its models in the markets of South Korea, India, Thailand, and is also actively developing the digital market, online service and subscription models.
But despite the changes, Volvo is considered a company with a high level of trust, has a reputation as a strong manufacturer. The company is still trying to find a balance between technological implementation, market development and savings.