Volvo Cars Plans 2,500 Job Cuts in New Cost-Saving Push

Volvo Cars plans to cut 2,500 jobs after a weak third quarter, targeting full financial benefits from cost reductions by the end of 2027 as revenue fell 22.6% and it swung to a net loss.

The reductions cover about 2,000 positions in Sweden and 500 elsewhere, or roughly 6% of the workforce. The plan follows an earlier effort to eliminate 3,000 jobs and includes savings from overhead and other costs. Volvo Cars also plans to end consulting contracts, leave some departing workers’ positions unfilled and offer targeted exit packages.

The company’s third-quarter results showed a 22.6% year-over-year revenue decline and a swing to a net loss from a profit in the year-earlier quarter. Revenue in China fell nearly 50% as local brands competed on price. U.S. tariffs pressured margins, while reduced electric vehicle incentives added pressure. Volvo Cars withdrew its 2026 sales and cash-flow forecasts Oct. 2.

The automaker plans 13 new vehicles by 2030, including six China-focused models through closer work with Geely. Production of two of those models is planned to begin in 2027. Volvo Cars also plans to build the XC60 in South Carolina starting early that year and introduce a lower-priced electric car in Europe later in 2027.