ISTANBUL 

Swedish automaker Volvo Cars announced Monday that it will slash 3,000 jobs as part of its "cost and cash action plan."

"The action plan aims to build a stronger and even more resilient Volvo Cars at a time when the automotive industry is facing considerable challenges in its external environment," said a statement from the automaker.

The plan is worth 18 billion Swedish kronor (approximately $1.89 billion) and includes the creation of a leaner, more efficient organization with a structurally lower cost base, which is estimated to result in a layoff of 3,000 jobs.

The majority of these reductions will affect office jobs in Sweden and will represent around 15% of Volvo's global workforce.

"These structural changes are necessary for Volvo Cars to deliver on its long-term strategy, strengthening its foundations for profitable growth," it said.

Volvo's CEO Hakan Samuelsson said: “The automotive industry is in the middle of a challenging period. To address this, we must improve our cash flow generation and structurally lower our costs. At the same time, we will continue to ensure the development of the talent we need for our ambitious future.”