Volvo Cars plans 2,500 job cuts after third-quarter loss

Volvo Cars said on October 23, 2026, that it would eliminate about 2,500 positions globally after reporting a third-quarter net loss of 5.7 billion kronor. The carmaker cited US tariffs and competition from Chinese brands as pressures on its business.

Quarterly revenue fell nearly 23% from a year earlier to 66.9 billion kronor. The loss compared with a profit of 4.5 billion kronor in the corresponding quarter last year. Chinese group Geely holds a majority stake in the Sweden-based company.

The additional savings program totals 5 billion kronor and includes cutting about 2,000 positions in Sweden and another 500 elsewhere. Volvo Cars said it would end consultant contracts, allow positions to disappear through natural attrition and offer targeted employee exit packages. It expects the measures to have their full financial effect by the end of 2027.

Volvo Cars also said the withdrawal of US consumer incentives for fully electric vehicles and plug-in hybrids under President Donald Trump had hurt margins. The company abandoned its goal of an exclusively fully electric lineup by 2030 in 2024.

The new measures follow an 18 billion kronor cost-cutting program announced last year that included around 3,000 job reductions globally. Chief executive Håkan Samuelsson said weaker volumes required further action to reduce the company's break-even point and improve cash flow.