FRANKFURT, Germany: Volvo Cars, based in Sweden, is cutting 3,000 jobs to reduce costs as the automobile industry struggles with trade tensions and economic uncertainty.

Of these job cuts, about 1,200 will affect staff in Sweden. Another 1,000 positions, held mainly by consultants in Sweden, will also be eliminated. The remaining layoffs will take place in other countries. Most of the jobs being cut are office roles.

"These decisions are difficult but necessary to make Volvo Cars stronger and more resilient," said Håkan Samuelsson, the company's president and CEO.

Samuelsson, who returned as CEO after leading the company from 2012 to 2022, announced a plan in April to cut costs by 18 billion Swedish crowns (US$1.9 billion). A significant part of the plan involves reducing white-collar jobs, which make up 40 percent of the workforce.

"It's white collar in almost all areas, including R&D, communication, human resources," Samuelsson told Reuters late last week, "So it's everywhere, and it's a considerable reduction."

"I think it will be very healthy and will save us money and give space for people to (take on) bigger responsibilities."

"It's tailored to make us structurally more efficient, and then how that plays out might vary a bit depending on the area. But no stone is left unturned," CFO Fredrik Hansson said.

Volvo Cars, which China's Geely owns, currently has 42,600 full-time employees. Car manufacturers worldwide are facing higher material costs, a weaker European market, and high U.S. tariffs on imported cars and steel.

Volvo's main offices are in Gothenburg, Sweden. It also builds cars and SUVs in Belgium, the U.S. state of South Carolina, and China.

In April, the company's global sales dropped 11 percent compared to the same month last year. Volvo had earlier aimed to make all of its cars electric by 2030, but last year, it scaled back that plan due to new tariffs on electric vehicles in different markets.

The current job cuts affect about 15 percent of Volvo's office staff and will cost 1.5 billion Swedish crowns once they are implemented.