Volvo Cars Cuts 2,500 Jobs After Third-Quarter Loss

Volvo Cars will cut 2,500 jobs globally, including 2,000 positions in Sweden, after reporting an adjusted operating loss of 3.7 billion Swedish crowns for the third quarter of 2026. The losses were driven by weak electric vehicle demand, high development costs, and intense competition from Chinese automakers. In the United States, sales declined following the removal of EV consumer incentives and the imposition of tariffs under President Donald Trump.

CEO Hakan Samuelsson announced a 5-billion-crown savings plan targeting variable costs and indirect spend to be completed by the end of 2027. These reductions follow 3,000 job cuts implemented in 2025. Due to a deteriorating market outlook, the company has scrapped its full-year cash flow and sales volume guidance.

Samuelsson is expected to be replaced as CEO by Skoda Auto chief Klaus Zellmer by October 2027. The company's majority owner, Geely Holding Group, oversees the manufacturer as it navigates a revenue drop of nearly 50% in the Chinese market.