Volvo Layoffs: Carmaker to Cut 2,500 Jobs Globally as Q3 Loss Widens
Volvo Cars plans to cut around 2,500 jobs globally, including 2,000 in Sweden, as its third-quarter operating loss widens to 3.7 billion Swedish crowns. Facing weak EV demand, tariffs and Chinese competition, the automaker will reduce costs by 5 billion crowns while addressing EX60 production delays and prioritising margins in China.
Swedish automaker Volvo Cars has announced plans to cut approximately 2,500 jobs globally after reporting a wider third-quarter operating loss. The workforce reduction comprises around 2,000 positions in Sweden and 500 across international markets, affecting roughly 6 percent of the company's total staff.
The decision follows mounting financial pressure from slowing electric vehicle demand, increased trade tariffs, and intense competition in China. As per a report by Livemint, Chief Executive Officer Hakan Samuelsson described the third-quarter performance as very disappointing, noting that the company must reinforce its turnaround strategy. American Express Layoffs: CEO Steve Squeri Announces 5% Global Workforce Cut.
Third-Quarter Loss and Widening Cash Burn
Volvo reported a third-quarter operating loss of 3.7 billion Swedish crowns (373 million USD), reversing from an operating profit of 5.8 billion crowns in the same period last year. The performance fell significantly short of market consensus expectations, alongside a 50 percent drop in revenue and a decline in gross margins to 14.7 percent.
The automaker also recorded an increased cash burn of 8.9 billion Swedish crowns for the quarter. To stabilize operations, management plans to trim an additional 5 billion crowns in indirect spending and variable expenses, with reductions expected to be completed by mid-2027 through natural attrition, consultant contract terminations, and targeted exit packages.
Production Delays and Strategic Focus on China
Central to the company's long-term transformation plan is the EX60 electric SUV, designed as an electric successor to the popular XC60. However, manufacturing issues in battery assembly have delayed production, with only 5,000 units completed out of a planned 40,000 target for the current year. Qualcomm Layoffs: CEO Cristiano Amon Announces Global Job Cuts Starting in November.
To navigate market challenges in China, Volvo is prioritizing operating margins over volume while preparing region-specific vehicle models. Incoming Chief Executive Officer Klaus Zellmer will succeed Samuelsson next year, taking charge of the company's ongoing cost-reduction and localization initiatives.
(The above story first appeared on LatestLY on Oct 24, 2026 09:18 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).