Volvo preps for an all-EV future with plans to shift US and Canadian workforce
Volvo Cars is preparing to go all-electric by 2030. To do so, Volvo is shifting US and Canadian operations as part of an $88 million restructuring effort to boost the brand’s competitiveness in the future.
The new initiative, codenamed CORE+, is “all-encompassing,” according to Volvo Car USA and Canada President Michael Cottone.
Volvo’s strategy aims to tighten costs, enhance efficiency, and update its workforce for an all-EV future.
Cottone told Automotive News, “There’s not any area of the business that is not impacted.” According to sources, Volvo is trimming over 10% of its white-collar workforce in the US and Canada. It will also downsize its regional personnel by offering early retirement.
According to a source, the Swedish automaker is “turning over every rock they can to make themselves more efficient.” The reduction is expected to take place by early October.
Volvo Cars USA spokesperson Russel Datz confirmed the company is scaling back operations at its Silicon Valley Tech Center, saying it will maintain a “small presence.”
The move comes after Volvo cut roughly 1,300 jobs in Sweden in May as part of a broader restructuring effort.
Volvo shifts its workforce for an all-EV future
Volvo plans to become a fully electric car brand by 2030. By 2025, Volvo wants pure EV models to account for half its expected 1.2 million sales.
The Swedish EV maker plans to launch a new electric model each year to build its lineup. With that comes phasing out internal combustion engines and even hybrids.
The transition requires a different skill set. Cottone said the CORE+ strategy will establish a “more focused Volvo Cars” while benefitting retailers.
Volvo Cars CEO Jim Rowan mentioned the company was looking to upskill its workforce in the new EV era. He said, “We need to open some white space to bring in the skills that we need for that future.”
The Swedish EV maker is looking to hire experts to assist in the transition, including those with knowledge of battery chemistry, inverters, and silicon carbide technology.
Volvo’s restructuring efforts will not affect its global production network, including its assembly plant in Ridgeville, South Carolina. Rowan said in July, “We need the output from the factories to keep up with demand, which was 50 percent higher than last year.”
Cottone ensures the strategy will help fuel the automaker’s transition to an all-EV future with the funds and workforce needed to get the job done.
Electrek’s Take
Most legacy automakers have introduced restructuring plans at this point to transition the brands into the new electric era.
From Volvo’s comments, the company is upskilling its workforce to maintain competitiveness as the industry moves to electric.
Meanwhile, the company opened a new tech hub in Singapore this week to support its in-house tech and software development capabilities. The announcement comes after Volvo added a tech hub in Krakow, Poland, earlier this year.
Both sites aim to optimize their global tech strategy while attracting “the best talent from around the world.” Volvo also has tech hubs in Stockholm and Lund in Sweden and Bangalore, India, with engineering centers in Shanghai, China, and Gothenburg, Sweden.
Volvo is gearing up for a global EV expansion, and getting the right personnel is critical for the transition.
In June, the Swedish EV maker unveiled its smallest and cheapest EV, the EX30, which is expected to be a game changer for Volvo starting at $35,000. It will join the flagship EX90, revealed last November, in the automaker’s all-electric lineup.
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The Stripe logo on a smartphone with U.S. dollar banknotes in the background.
Budrul Chukrut | SOPA Images | LightRocket via Getty Images
Stripe cut 300 jobs, representing about 3.5% of its workforce, mostly in product, engineering and operations, CNBC has confirmed.
The payments company, valued at about $70 billion in the private markets, still expects to increase headcount by 10,000 by the end of the year, which would be a 17% increase, and is “not slowing down hiring,” according to a memo to staff from Chief People Office Rob McIntosh. Business Insider reported earlier on the cuts and the memo.
A Stripe spokesperson also confirmed to CNBC that a cartoon image of a duck with text that read, “US-Non-California Duck,” was accidentally attached as a PDF to emails sent to some of the employees who were laid off. Some of the emails mistakenly provided affected employees with an incorrect termination date, the spokesperson said.
McIntosh sent a follow-up email to staffers apologizing for the “notification error” and “any confusion it caused.”
“Corrected and full notifications have since been sent to all impacted Stripes,” he wrote.
In 2022, Stripe cut roughly 1,100 jobs, or 14% of its workers, downsizing alongside most of the tech industry, as soaring inflation and rising interest rates forced companies to focus on profits over growth. The Information reported that Stripe had a few dozen layoffs in its recruiting department in 2023.
Stripe’s valuation sank from a peak of $95 billion in 2021 to $50 billion in 2023, before reportedly rebounding to $70 billion last year as part of a secondary share sale. The company ranked third on last year’s CNBC Disruptor 50 list.
In October, Stripe agreed to pay $1.1 billion for crypto startup Bridge Network, whose technology is focused on making it easy for businesses to transact using digital currencies.
Brothers Patrick and John Collison, who founded Stripe in 2010, have intentionally steered clear of the public markets and have given no indication that an offering is on the near-term horizon. Total payment volume at the company surpassed $1 trillion in 2023.
WATCH: Early Bridge investor weighs in on $1.1 billion Stripe deal
Thinking about upgrading your EV? Rivian (RIVN) launched a new promo on Tuesday, offering up to $6,000 to upgrade your R1S or R1T. Here’s how you can snag some savings.
Rivian R1S and R1T upgrade deal offers up to $6,000
Rivian delivered over 51,500 vehicles last year as the EV maker gains momentum. Although it was only slightly higher than the ~50,100 delivered in 2023, Rivian is expected to see even more growth this year.
After shutting down its Normal, IL manufacturing plant last April and renegotiating supplier contracts, Rivian has seen “significant cost improvements,” according to CEO RJ Scaringe.
Rivian also began delivering its next-gen R1S and R1T models last year. The new Large and Max battery packs have redesigned modules and more efficient packaging, “making them easier to manufacture and service.” For example, Rivian’s new EVs use seven ECUs, down from 17 in the first-generation R1T and R1S.
With new plant upgrades, reworked supplier contracts, and more efficient vehicles, Rivian is now passing the savings on to customers.
Rivian introduced a new promo on Tuesday, offering up to $6,000 to upgrade your R1T or R1S. The bonus amount varies by trim:
- Tri with Max battery: $6,000 USD / CAD 8,600
- Dual with Max battery and Performance upgrade: $4,500 USD / CAD 6,500
- Dual with Max battery: $3,000 USD / CAD 4,300
The offer is for current R1T or R1S owners or lessees in the US and Canada. Rivian launched the new promo on January 21, and it runs through March 31, 2025.
After you purchase or lease a qualifying vehicle, Rivian will apply a discount toward the MSRP. You must take delivery by March 31, 2025. In the fine print, Rivian stated, “You must request a trade-in estimate to qualify for this offer, but trade-in of a vehicle is not required.”
Any other models are excluded from the offer. These include Dual Standard configurations, Dual with Large battery configurations, custom builds, demo vehicles, and pre-owned vehicles.
The new offer follows Rivian’s previous upgrade promo introduced last October, giving qualifying gas-powered vehicle owners or lessees up to $3,000.
Check out the Rivian R1 Shop to view eligible models. You can see eligible Rivian R1S here and R1T models here.
Electrek’s Take
Rivian’s R1S was already the tenth best-selling electric vehicle in the US last year, with nearly 27,000 models sold. With more driving range and power at a lower cost, the electric SUV could see even more demand in 2025.
Then again, with the arrival of new luxury electric SUVs, like the Jeep Wagoneer S and Volvo EX90, Rivian will face more competition in the US.
Rivian’s latest promo comes as the Company looks to carry the momentum from the end of 2024 into the new year. The EV maker is offering other deals, including 1.99% APR for 60 months on the R1 Dual with a Max Battery and Performance upgrade.
Even if you are not eligible for the promo, we can still help you find deals on Rivian’s electric SUV in your area. You can use our links below to view offers on the Rivian R1S and R1T near you today.
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