Volvo Cars to cut 2,500 jobs after swinging to third-quarter loss

Volvo Cars said on Friday it would cut a further 2,500 jobs, mostly in Sweden, after plunging to a much bigger-than-expected third-quarter operating loss that sent its shares down almost 30 per cent, Reuters reported.

The Geely-owned carmaker reported an operating loss of 3.7bn Swedish kronor ($373m) against a 5.8bn-kronor profit a year earlier, far worse than the 724m-kronor consensus loss, Citi said. The Hindu reported a net loss of 5.7bn kronor (against a 4.5bn profit) on revenue down nearly 23 per cent at 66.9bn kronor.

Samuelsson said the cuts — about 6 per cent of the workforce, including roughly 2,000 jobs in Sweden — would come via ending consultant contracts, natural attrition and targeted exit packages. They add to 3,000 cuts announced earlier and should be completed by mid-2027, though he did not rule out further measures.

Volvo also announced 5bn kronor of further indirect and variable cost cuts on top of its existing 23bn-kronor programme, with the savings expected by end-2027, the Straits Times reported.

“The third quarter of 2026 was very disappointing and reflects a year that has become far more challenging than originally anticipated,” Samuelsson said.

The company blamed uneven EV demand, US tariffs and a sharp China slowdown, where deliveries fell 40.6 per cent. Gross margin dropped to 14.7 per cent from 20.4 per cent a year earlier. Earlier this month Volvo scrapped its full-year volume and cash-flow guidance.

Sources: Reuters: https://www.reuters.com/world/china/volvo-cars-swings-third-quarter-loss-plans-job-cuts-2026-10-23/ · The Hindu: https://www.thehindu.com/business/Industry/volvo-cars-announces-2500-job-cuts/article71614892.ece · The Straits Times: https://www.straitstimes.com/business/volvo-cars-to-cut-2500-jobs-as-third-quarter-swings-to-loss?ref=latest · IOL: https://iol.co.za/news/brics/2026-10-23-volvos-reckoning-a-premium-brand-under-pressure/