Volvo Cars Plans 2,500 More Job Cuts After Quarterly Loss

Volvo Cars plans to remove about 2,500 positions worldwide, including 2,000 in Sweden, after reporting a third-quarter loss on Friday, 23 October. The carmaker is setting out additional cost reductions as its China and US businesses face pressure.

Its operating result, excluding income from joint ventures and associates and items affecting comparability, was a loss of 3.7 billion Swedish crowns, against a 5.8 billion crown profit a year earlier. Revenue fell to 66.9 billion crowns from 86.4 billion.

The job reductions will include ending consultant contracts, natural staff turnover and targeted exit packages. They are part of a plan to cut an additional 5 billion crowns in indirect spending and variable costs. Volvo expects the full financial benefits by the end of 2027.

The company said China revenue almost halved amid intense competition and price pressure. In the US, tariffs and the withdrawal of incentives for electrified cars weighed on margins.

The announcement concerns Volvo Cars, the passenger-car company majority-owned by Geely Holding. The new cuts are in addition to 3,000 positions announced earlier, Reuters reported.

Sources: Reuters, via Midwest Communications; Volvo Cars Q3 results statement.

Archival photo: Volvo EX40, 2025. Charles / Wikimedia Commons, CC0 1.0. Cropped to 16:9 by Morval Universal.