Volvo Plans To Cut About 2,500 Jobs Worldwide

The company “Volvo Cars” announced on Friday that it plans to cut about 2,500 jobs worldwide, after recording a loss in the third quarter due to the deterioration of business conditions in China and the United States of America.

About 2,000 jobs are located in Sweden. The reduction in the number of employees will include the termination of contracts with consultants, the natural outflow of the workforce and voluntary departure programs with severance pay, reports Anadolu Agency.

The company aims to realize additional savings of five billion Swedish kroner ($504 million), with the full financial effect expected to be visible by the end of 2027.

Adjusted operating loss reached $373 million, compared to a profit of $585 million a year earlier. Revenue fell from $8.71 billion to $6.74 billion.

Revenues in China were nearly cut in half by fierce competition and price pressures, while margins in the US were hit by tariffs and the removal of incentives for electrified vehicles.

The outflow of free cash resources increased from 434 million to about 897 million dollars.

Fully electric vehicles accounted for 32 percent of sales (compared to 22 percent previously), while the share including plug-in hybrids reached 53 percent.

Volvo plans 13 new models by the end of 2030, including two models intended exclusively for the Chinese market, which will be presented in 2027 as part of closer cooperation with Geely. It also plans to begin production of the XC60 in Charleston in the first quarter of 2027.

• Also See: Volvo Recorded A 10.7 Percent Drop In Sales