Volvo Cars to Cut 2,500 More Jobs as Big Quarterly Loss Sends Shares Down 30%

Volvo Cars to Cut 2,500 More Jobs as Big Quarterly Loss Sends Shares Down 30%

Volvo Cars will cut a further 2,500 jobs after plunging to a much larger-than-expected quarterly loss, sending its shares down almost 30 per cent on Friday. The Swedish carmaker, majority-owned by China's Geely, reported an operating loss of 3.7 billion Swedish crowns ($373 million) for the third quarter, compared with a profit of 5.8 billion crowns a year earlier and far worse than the 724 million crown loss analysts had expected.

The latest cuts affect about 6 per cent of the workforce, including around 2,000 jobs in Sweden, through ended consultant contracts, natural attrition and exit packages. They come on top of 3,000 reductions announced earlier, plus a further 5 billion crowns of cost savings on top of an existing 23 billion crown programme. Chief executive Hakan Samuelsson called the quarter very disappointing and said the turnaround plan needed decisive reinforcement, with the cuts expected to be completed by mid-2027.

Volvo has struggled with uneven demand for electric cars, tariff pressures and a deteriorating market in China, where it now plans to protect profit margins rather than chase sales in price wars. Its gross margin fell to 14.7 per cent in the quarter, down from 20.4 per cent a year earlier.

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