Volvo Cars announces 2,500 job cuts following third-quarter losses

Volvo Cars announced on Friday a new cost-saving plan aimed at reducing expenses by 5 billion Swedish kronor. The initiative includes the elimination of approximately 2,500 jobs worldwide, with 2,000 positions affected in Sweden and 500 in other countries. The company intends to achieve these reductions through natural attrition, targeted separation packages, and the expiration of existing employment contracts.

The automotive manufacturer, majority-owned by the Chinese group Geely, reported a net loss of 5.7 billion kronor for the third quarter, a sharp decline compared to the 4.5 billion kronor profit recorded in the same period last year. Revenue dropped by nearly 23% to 66.9 billion kronor. CEO Hakan Samuelsson attributed these negative results to a challenging global environment characterized by US tariffs, intense competition from Chinese manufacturers, deglobalization, and climate change pressures.

This new round of cuts follows a previous austerity program initiated last year, which involved 3,000 layoffs and cost savings of approximately 1.62 billion euros. The company continues to navigate significant external market pressures as it seeks to stabilize its financial position amidst the ongoing industry downturn.