Volvo Cars to cut 2,500 jobs as China slump drives quarterly loss

By Mucahithan Avcioglu

ISTANBUL (AA) - Volvo Cars announced Friday plans to cut approximately 2,500 jobs worldwide after posting a third-quarter loss amid worsening conditions in China and the US.

Around 2,000 positions are in Sweden. The cuts will involve ending consultant contracts, natural attrition and targeted exit packages.

The company aims to save an additional 5 billion Swedish kronor ($504 million), with the full financial impact expected by end-2027.

Its adjusted operating loss reached $373 million, against a $585 million profit a year earlier. Revenue fell to $6.74 billion from $8.71 billion.

China revenue nearly halved amid fierce competition and pricing pressure, while US margins suffered from tariffs and the withdrawal of electrified-vehicle incentives.

Free cash outflow widened to about $897 million from $434 million.

Fully electric vehicles accounted for 32% of sales, up from 22%, while the share including plug-in hybrids reached 53%.

Volvo plans 13 new models by end-2030, including two China-specific models to be unveiled in 2027 through closer cooperation with Geely.

It also plans to start XC60 production in Charleston in the first quarter of 2027.

Earlier this month, Volvo withdrew its full-year sales volume and cash flow outlook, citing weaker-than-expected sales and deteriorating market conditions.

The company declined to provide updated short-term guidance amid increased uncertainty, but maintained its long-term ambitions for strong positive cash flow and an 8% operating margin.

The company's share price fell around 29% following the financial results announcement.

Mücahithan Avcıoğlu