Volvo Cars Announces 2,500 Job Cuts Following Third-Quarter Loss
Volvo Cars reports a Q3 operating loss amid weak demand and rising tariffs. The automaker plans 2,500 job cuts to slash costs and stabilize operations.
POLICY WIRE — Stockholm, Sweden — Volvo Cars revealed plans on Friday to eliminate 2,500 positions, with the majority of the reductions impacting its workforce in Sweden. This move is part of a broader strategy to reduce expenditures in the face of intensifying competition from Chinese manufacturers and cooling market demand.
The company, which is majority-owned by Geely Holding, reported an operating loss for the third quarter. This downturn marks a significant shift from the profit recorded during the same period last year, as revenue plummeted by 22.6 percent to SEK 66,896 million.
Financial performance was hampered by a sluggish production ramp-up for the new EX60 electric SUV, alongside soft demand in both China and the United States. Furthermore, the company’s gross margin dropped to 14.7 percent, down from 20.4 percent in the previous year, reflecting the heavy impact of tariffs and aggressive discounting.
These latest layoffs follow a previous restructuring effort initiated in 2025, when CEO Samuelsson returned to lead the company. That earlier initiative included 3,000 job cuts and an 18 billion crown savings program designed to tighten corporate costs.
In response to the mounting market pressures and cash flow challenges, the Gothenburg-based automaker has officially withdrawn its financial outlook. Approximately 2,000 of the newly announced job losses are expected to occur within Sweden.
Reporting by Policy-Wire (PW)
