Volvo Cuts 2,500 Jobs and Shares Plunge 29% on Q3 Loss
Volvo cuts 2,500 jobs and reports a Q3 operating loss of 5.6 billion Swedish crowns after a steep decline in China and US market pressures, sending shares tumbling 29%.
Volvo announced plans to cut 2,500 jobs globally, including 2,000 in Sweden, following a sharp downturn in the Chinese market that heavily impacted third-quarter earnings.
The Swedish automaker reported an operating loss of 5.6 billion Swedish crowns ($563.7 million) for the third quarter, compared to an operating profit of 6.4 billion crowns in the same period last year. Following the announcement, the company's shares plummeted by 29%.
Volvo attributed the losses to a deteriorating business environment, citing tougher market conditions in China and the United States that negatively affected free cash flow. Revenues in China plunged by nearly 50% year-on-year as premium brands faced intense competition and price pressure from new Chinese manufacturers. Meanwhile, the US market suffered from tariff impacts and reduced EV customer incentives, further squeezing profit margins. To offset these challenges, Volvo aims to cut 5 billion crowns in costs.
