Volvo Cars announces 2,500 job cuts as it swings to quarterly loss
The Swedish automaker said weak demand in China and the United States pushed its quarterly operating loss to 3.7 billion kronor.
- On Friday, October 23, 2026, Volvo Cars announced 2,500 job reductions representing around 6% of its global workforce while reporting an adjusted operating loss of 3.7 billion Swedish crowns for the third quarter.
- Weak demand in China, where deliveries fell more than 40% in the third quarter, and the United States hit sales while slow production ramp-up of the EX60 electric SUV compounded losses.
- Mirroring cost-cutting moves by Volkswagen and BMW, Volvo plans to save 5 billion kronor through these measures, building on earlier restructuring with around 3,000 job cuts as the automaker reported a 5.6 billion kronor operating loss.
- CEO Hakan Samuelsson stated the turnaround plan requires "decisive reinforcement," with plans to introduce seven new vehicles for Western markets before handing leadership to Klaus Zellmer by October 1, 2027.
- Volvo Cars' share price hit a record low this week, down 54% year-to-date, after the company scrapped full-year guidance, though Samuelsson maintains the relationship with Zhejiang Geely Holding remains a "huge advantage.
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Added to this is 449 million euros in reductions in indirect expenses and variable costs in addition to the cost-reduction programs already in place. The financial effects of these measures will be realized at the end of 2027, when total indirect expenses will be almost 25% lower than in fiscal year 2024, says Volvo.
Volvo to cut 2,500 jobs as Chinese rivals squeeze profits and sales slump - London Business News
Swedish carmaker plans to save £376mn through job reductions and lower overheads after quarterly revenue falls 23 per cent, as fierce competition in China and US tariffs deepen pressure on… The post Volvo to cut 2,500 jobs as Chinese rivals squeeze profits and sales slump appeared first on London Business News
Volvo to slash 2,500 jobs amid intense pressure from Chinese brands and Trump's auto tariffs
Swedish manufacturer Volvo has confirmed that it plans to cut 2,500 jobs in response to strong competition from Chinese car brands.In its interim report for the third quarter of 2026, Volvo announced that its retail sales had decreased by 11 per cent to 141,300 cars.Between July and September, revenues fell by 23 per cent to SEK 66.9 billion (£5billion), as a result of lower wholesale volumes and adverse sales mix and pricing.In response to the …
Volvo Cars is recording billions of losses and reacts with a savings program: around 2500 jobs are lost. Not only is the Chinese market weakening, but the US policy also poses challenges for the car manufacturer.
Swedish passenger car manufacturer Volvo Cars to cut 2.5 thousand
Swedish passenger car manufacturer Volvo Cars will cut 2.5 thousand jobs due to lower sales and operating profit.The full financial impact of these measures is expected to be achieved by the end of 2027, the company said in a statement.According...
(Brussels=Yonhap News) Correspondent Hyun Yoon-gyeong = Swedish automobile manufacturer Volvo experienced a massive net loss in the 3rd quarter due to a sharp drop in sales in China and US tariffs, and a workforce of 2,500...
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