Volvo Cars is preparing to reduce its workforce as financial pressures mount, with the Swedish automaker planning to eliminate around 2,000 positions in Sweden and another 500 across its international operations. The announcement follows a disappointing third quarter in which operating losses exceeded expectations and cash outflows doubled from a year earlier.
\n\nInvestors reacted sharply to the developments, sending Volvo Cars shares down 24 per cent on Friday to a record low. The company, controlled by China's Geely Holding, is facing several challenges, including inconsistent electric vehicle (EV) demand, higher tariff costs and intensifying competition in China.
\n\nChief Executive Hakan Samuelsson said the company needed to strengthen its ongoing turnaround efforts in response to deteriorating business conditions.
\n\n“The third quarter of 2026 was very disappointing and reflects a year that has become far more challenging than originally anticipated. Our ongoing turnaround plan therefore needs a decisive reinforcement,” CEO Hakan Samuelsson announced on Friday.
\n\nThe latest workforce reduction comes after Volvo had already announced 3,000 job cuts. The company expects the new round of reductions to be completed by mid-2027. The measures will involve ending consultant contracts, relying on natural attrition and offering targeted exit packages, affecting approximately 6% of its…
Original source: https://www.timesnownews.com/business-economy
