Volvo reports loss, cuts 2,500 jobs

Volvo Cars reported a third‑quarter operating loss of 5.6 billion SEK, or 3.7 billion SEK excluding joint ventures and associates. Revenue fell about 23% to 66.9 billion SEK from 86.4 billion SEK a year earlier.

The automaker announced a structural reduction of about 2,500 jobs worldwide, with roughly 2,000 of those cuts in Sweden. The reductions will be achieved through ending consultant contracts, natural attrition and targeted exit packages, building on a 3,000‑person cut announced in May 2025.

In addition to layoffs, Volvo plans to trim an extra 5 billion SEK in indirect spending and variable costs, aiming for an almost 25% reduction in indirect spend by the end of 2027 and a roughly 30% cut in investment compared with 2024.

Weak performance in China, where revenue fell nearly 50% amid fierce competition, and tariff pressure in the U.S., where the removal of electrified‑vehicle incentives and a negative revaluation of CAFE credits hit margins, weighed heavily on results. These external challenges, combined with raw‑material price swings, contributed to the loss and the decision to cut jobs.

Looking ahead, Volvo is accelerating the launch of long‑range plug‑in hybrids for the XC90 and XC60, with production of the XC60 set to localize in Charleston, South Carolina, in early 2027. The company also plans to introduce 13 new cars by 2030. Its battery‑electric share of sales in Europe reached 45% in the third quarter, and it is preparing for a CEO transition to former Skoda boss Klaus Zellmer next year.