STOCKHOLM: Swedish carmaker Volvo Cars announced on Friday plans to cut around 2,500 jobs worldwide as US tariffs and intensifying competition from Chinese brands pushed the company into a third-quarter net loss.
The company, owned by China’s Geely group, reported revenue of 66.9 billion Swedish kronor ($6.7 billion) for the third quarter, down nearly 23 per cent from the same period last year.
Volvo Cars recorded a net loss of 5.7 billion kronor during the quarter, compared with a net profit of 4.5 billion kronor a year earlier.
Volvo Cars shares fall 20% after it swings to loss and cuts 2,500 jobs https://t.co/YXeqs4mivh
— Finance News (@ftfinancenews) October 23, 2026
“We continue to operate in a very tough environment with strong external challenges: de-globalisation, hypercompetition and climate change,” chief executive Hakan Samuelsson said in a statement.
As part of a new five-billion-kronor savings plan, the company said it would cut around 2,000 jobs in Sweden and a further 500 internationally. The reductions will be implemented through natural attrition and targeted exit packages for employees.
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Volvo Cars, which had invested heavily in electric vehicles (EVs), said the removal of consumer incentives for EV purchases in the United States under President Donald Trump had also affected its profit margins.
In 2024, the company abandoned its target of selling exclusively electric vehicles by the end of the decade. Samuelsson said the company remained confident in its long-term strategy but needed further measures to address weak sales volumes, lower its break-even point and improve cash flow.
The latest announcement follows a cost-cutting programme worth 18 billion kronor unveiled by Volvo Cars last year, as European carmakers continue to face challenging global market conditions.
In September, the company announced that Samuelsson would step down when his contract expires. Skoda Auto chief executive Klaus Zellmer is expected to replace him no later than October next year.
