Swedish automaker Volvo plans to fire approximately 3,000 employees as part of its new cash action plan.

The company announced the cuts in a press release Monday as it said the cuts were meant to address "global redundancies" as part of a nearly $1.89 billion plan that "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."

The terminations will mostly impact around 1,200 office positions and 1,000 consultants in Sweden but also include other jobs around the world, about 15% of its total office-based workforce.

Volvo said the firings are needed so it can "deliver on its long-term strategy, strengthening its foundations for profitable growth." It plans to have the terminations completed by Fall 2025.

"The automotive industry is in the middle of a challenging period," said Volvo Cars President and CEO Håkan Samuelsson via the press release, "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."

The company also noted that it will stick with its plan to eventually become a fully electric car company.

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