Internal restructuring
Västsverige; Västra Götalands län;
Location of affected unit(s)
Skövde, Göteborg
Manufacture For Transport Equipment
Manufacture Of Motor Vehicles, Trailers And Semi-Trailers
29.1 - Manufacture of motor vehicles

850 jobs
Number of planned job losses
Job loss
100 jobs
Number of planned job creations
Job creation
Announcement Date
29 April 2020
Employment effect (start)
1 October 2020
Foreseen end date
31 December 2020


Volvo Cars announced its plan to dismiss 1160 employees working at the production unit of Gothenburg and 140 employees working at the production unit of Skövde. The company informed also about the dismissal of 300 consults. 

Volvo Cars argues that these dismissals are connected to the ongoing shift towards a more agile organisational model. The company plans to increase its focus on online activities, fleet electrification, and self-driving cars. While the effects of the COVID-19 pandemic are not directly related to this restructuring event, the rapidly changed market environment has made the need for this shift more urgent.  

A representative of trade union Unionen argued that while they support the Volvo Cars’ efforts to shift towards a new organisational model, they would have wanted the company to continue this shift without dismissals. 

Updated 01/10/20

Volvo Cars will reduce staffing levels by 590 employees in Göteborg and 60 employees in Skövde. In total, 650 white-collar employers are losing their jobs, which is half as many redundancies than what was announced in April 2020. In addition, 300 consultants will also leave the company. According to the HR director, 90% are voluntary redundancies. 

The company also announced that by the end of this year, they will hire approximately 100 new employees with specific set of skills needed by Volvo Cars.



Eurofound (2020), Volvo Cars, Internal restructuring in Sweden, factsheet number 100518, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/100518.