Volvo Cars Cuts 2,500 More Jobs After a $373 Million Third-Quarter Loss

Volvo Cars said on October 23 it will cut a further 2,500 jobs, mostly in Sweden, after plunging to a much bigger-than-expected third-quarter operating loss, Reuters reported. The automaker posted an operating loss of 3.7 billion Swedish kronor ($373 million) for the quarter, compared with a 5.8 billion kronor profit a year earlier — and far worse than the 724 million kronor loss analysts had expected. Shares fell almost 30% on the news.

The cuts affect about 6% of Volvo's workforce, including around 2,000 jobs in Sweden, achieved by ending consultant contracts, natural attrition and targeted exit packages. They come on top of 3,000 job reductions announced earlier, and Volvo added a further 5 billion kronor of indirect spending and variable cost cuts to its previously announced 23 billion kronor program, with savings expected by the end of next year. CEO Hakan Samuelsson told Reuters the latest cuts should be completed by mid-2027, though he did not rule out further measures if the turnaround falls short.

Volvo blamed a brutal combination: uneven demand for electric vehicles, mounting tariff pressures in the US, the removal of US consumer EV incentives, and deteriorating market conditions in China, where it now says it will prioritize margins over market share rather than engage in aggressive price competition with domestic rivals. Revenue fell to 66.9 billion kronor from 86.4 billion a year earlier, and gross margin dropped to 14.7% from 20.4%. Earlier in October the company scrapped its full-year guidance for sales volume and cash flow. "The third quarter of 2026 was very disappointing and reflects a year that has become far more challenging than originally anticipated," Samuelsson said.