Volvo Cars plans to reduce its global workforce by approximately 2,500 positions, including 2,000 in Sweden, after reporting a third-quarter loss.
The company said on Friday, October 23, that the reductions would involve ending consultant contracts, natural attrition and targeted employee exit packages. They accompany an additional 5 billion Swedish kronor in planned savings, with full financial effects expected by the end of 2027.
Volvo reported an operating loss of 5.6 billion kronor. Excluding income from joint ventures and associates and items affecting comparability, its operating loss was 3.7 billion kronor. Revenue fell to 66.9 billion kronor from 86.4 billion a year earlier.
The company cited intense competition and pricing pressure in China, alongside US tariffs and the removal of electrified-car incentives.
The latest reductions come on top of 3,000 positions announced earlier. Chief executive Håkan Samuelsson told Reuters the new cuts should be completed by mid-2027.
