Volvo Cars announced it will cut 3,000 mostly white-collar jobs as part of a major restructuring to combat high costs, declining EV demand, and trade uncertainties. The move follows a plan unveiled in April by CEO Hakan Samuelsson, recently reinstated, to reduce costs by 18 billion Swedish crowns ($1.9 billion).

The layoffs, impacting all departments but centred in Gothenburg, account for 15% of Volvo’s office staff and will incur a one-time cost of 1.5 billion crowns. With much of its production in Europe and China, Volvo is particularly vulnerable to potential new U.S. tariffs.

The company also withdrew its financial guidance amid market volatility. Despite a 3.6% rise in share price on Monday, Volvo stock remains down 24% for the year.

Volvo, like many multinationals, is deeply entangled in global trade dynamics, particularly U.S. tariffs that threaten its low-cost exports instead of confronting the issues surrounding trade policies or market overproduction.