AsianFin -- Sweden-based Volvo Cars announced plans to cut approximately 3,000 positions as part of a sweeping cost-reduction initiative, with the majority of layoffs affecting white-collar roles in Sweden. The move represents about 15% of the company’s office-based workforce.

The job cuts come on the heels of an 18 billion Swedish kronor ($1.9 billion) restructuring plan unveiled last month. Volvo Cars, owned by China’s Geely Holding Group, is aiming to streamline operations amid mounting headwinds in the global auto industry.

Automakers worldwide are grappling with challenges including rising material costs, sluggish demand in European markets, and trade tensions, notably the 25% tariff on imported vehicles imposed by the U.S.

Volvo Cars CEO Håkan Samuelsson described the layoffs as a response to the “challenging period” the automotive sector is currently navigating.