Volvo Cuts 2,500 Jobs After Q3 Loss

Swedish automaker Volvo Cars announced Friday that it will slash approximately 2,500 jobs globally after US tariffs and intense competition from domestic brands in China drove the company into a third-quarter loss.

Volvo reported third-quarter revenue of 66.9 billion kronor ($6.7 billion), marking a nearly 23 per cent drop compared to the same period last year.

The automaker, majority-owned by China’s Geely, swung to a net loss of 5.7 billion kronor, down sharply from a net profit of 4.5 billion kronor a year prior.

“We continue to operate in a very tough environment with strong external challenges: de-globalisation, hypercompetition and climate change,” stated Chief Executive Hakan Samuelsson.

To counter these headwinds, the company launched a new five-billion-kronor savings initiative that will eliminate roughly 2,000 positions in Sweden and 500 across international operations through natural attrition and targeted severance packages.

The company’s bottom line suffered further as the United States rolled back consumer incentives for electric vehicles under President Donald Trump, squeezing profit margins for an automaker that had previously invested heavily in electrification.

“We are convinced that we have the right long-term strategy addressing these challenges,” Samuelsson explained.

“However, in the short term, with severely challenged volumes, we need to reinforce our turnaround plan with additional decisive actions, lowering our break-even point and improving cash flows to make us more resilient.”

This restructuring builds upon an 18-billion-kronor cost-cutting programme launched last year as European automakers battle worsening market conditions.

The announcements arrive during a period of leadership transition, following Volvo’s September confirmation that Samuelsson will step down at the end of his contract, with Skoda Auto CEO Klaus Zellmer scheduled to succeed him no later than October next year.