Volvo Cars to Cut 2,500 Jobs After Quarterly Loss
Volvo Cars has announced plans to cut 2,500 jobs globally as it faces mounting financial pressure from weak demand, US tariffs and intense competition from Chinese automakers. According to Reuters, the Swedish carmaker reported an adjusted operating loss of 3.7 billion Swedish crowns ($373 million) in the third quarter of 2026, compared with a profit of 5.8 billion crowns during the same period last year. Around 2,000 job cuts will take place in Sweden, with another 500 positions affected globally.
The company also plans to reduce indirect spending and variable costs by an additional 5 billion Swedish crowns by the end of 2027. The workforce reductions will involve ending consultant contracts, natural attrition and targeted exit packages for employees. Volvo Cars has struggled with cooling electric vehicle demand, challenging market conditions in China and rising costs. Its revenue in China fell by nearly 50% in the third quarter, while its gross margin declined to 14.7% from 20.4% a year earlier.
CEO Hakan Samuelsson described the third quarter as disappointing and said the company’s turnaround plan needed stronger measures. Earlier this month, Volvo Cars withdrew its full-year sales volume and cash flow guidance due to deteriorating market conditions. The latest cuts follow 3,000 job reductions announced in 2025 as part of a broader cost-saving programme. The company’s shares have also faced significant pressure, falling 54% year-to-date amid concerns over tariffs, weaker EV demand and high development costs.
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