Volvo Cars cuts 2,500 jobs after posting $373M loss in Q3
Volvo Cars is cutting an additional 2,500 jobs after posting a third-quarter operating loss of 3.7 billion Swedish kronor ($373 million), per its Oct. 23 press release.
The workforce reduction is on top of 3,000 staff cuts announced in May 2025 and part of the automaker’s planned cost-cuts of 18 billion kronor.
Volvo also said would reduce indirect spending and variable costs by a further 5 billion kronor, with the savings expected by the end of next year.
Its job cuts will be mainly felt in Sweden with the loss of 2,000 positions — “by ending consultant contracts, through natural attrition and by targeted exit packages to employees,” Volvo said in the release.
The Geely owned company said it is facing growing competition from automakers in China while ongoing import tariffs and the removal of consumer incentives for electric vehicles has hit its profit margins in the U.S.
“We continue to operate in a very tough environment with strong external challenges: de-globalization, hypercompetition and climate change,” said president and CEO Håkan Samuelsson. “However, in the short term, with severely challenged volumes, we need to reinforce our turnaround plan with additional decisive actions, lowering our break-even point and improving cash flows to make us more resilient,” he added.
Overall revenues for the quarter were 66.9 billion kronor versus 86.4 billion kronor for the same period last year while its operating loss compares to a 5.8 billion kronor profit in Q3 2025.
However, Volvo Cars points to its current EV leadership and “resilient performance” in Europe, where it had a BEV sales share of 45% in Q3.
It also plans its largest new vehicle program with 13 new cars by the end of 2030, with a tailored portfolio of models for Europe, the U.S. and China with more localized vehicle production.
Volvo Cars said it has divided the U.S. market into four regions to enable faster decision-making and improve sales.
It is fast-tracking the production start of the long-range plug-in hybrid versions of the XC90 and XC60, with European deliveries starting this year and the U.S. shortly after.
In Q1 2027, Volvo Cars will localize XC60 production at its plant in Charleston, South Carolina, and by the end of the decade, it will localize a second new model offered with multiple powertrain options.