Key facts
- Volvo Cars will cut 2,500 jobs globally, mostly in Sweden.
- The company reported a third-quarter adjusted operating loss of 3.7 billion Swedish crowns ($373 million).
- Revenue in China fell by almost 50% in the third quarter.
- Gross margin decreased to 14.7% from 20.4% year-on-year.
Volvo Cars announced on Friday that it will eliminate 2,500 jobs, primarily in Sweden, as it aims to reduce costs amidst intense competition from Chinese automakers and the impact of tariffs and weak demand in the United States. The company, majority-owned by China's Geely Holding, reported a third-quarter adjusted operating loss of 3.7 billion Swedish crowns ($373 million), a significant drop from the 5.8 billion crowns profit recorded a year prior. In addition to previous cost-saving measures, Volvo plans to cut an additional 5 billion crowns in indirect and variable costs by the end of 2026. The job losses will include ending consultant contracts, natural attrition, and targeted exit packages. The company has faced challenges with cooling EV demand, a nearly 50% revenue drop in China, high costs, and tariffs. Earlier this month, Volvo Cars withdrew its full-year sales volume and cash flow guidance due to a deteriorating market outlook. The company's gross margin fell to 14.7% in the third quarter, down from 20.4% last year, and its share price has hit a record low, down 54% year-to-date.