Volvo Cars announces 2,500 job cuts as it swings to quarterly loss
The automaker said weak sales in China and the United States pushed quarterly revenue down 23% and widened losses.
- 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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The crisis in the car industry is also not passing without a trace to Volvo. Instead of the 3000 employees announced so far, the Swedish car manufacturer is now separating itself from some 5500 employees. The past quarter "was very disappointing", says Volvo Group CEO Hakan Samuelsson.
Volvo Cutting 2,500 Additional Jobs Worldwide After Quarterly Revenue Fell 23% YoY
Volvo is cutting another 2,500 positions globally, consultants included. The Swedish automaker further relies on natural attrition and targeted exit packages to reach its target. Such a reduction is especially curious when you remember that Volvo still has plenty of new models to bring to market by 2030. The majority of said reductions will fall in Sweden, with Volvo estimating 2,000 cuts in the automaker's home market. Add the new 2... (continu…
Volvo will cut 2,500 jobs, mainly in Sweden, in a group attempt to reduce costs in the face of tough competition from Chinese car manufacturers and because tariffs and weak demand are affecting the car manufacturer’s sales in the United States. The company, mostly controlled by the Chinese ... Continue reading “Volvo prepares 2,500 layoffs to save 450 million in costs in the midst of the car crisis”
Volvo Car will cut 2.5 thousand jobs globally, as part of an additional restructuring plan that aims to save more than $500 million. Exclusive material for subscribers. To have full access, access the link of the material and register.
The Nordic company has plummeted to 27% on the Stock Exchange, recording historical minimums.
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