Business · Companies · 9 hrs ago
Volvo Cars shares fall 24% as company plans 2,500 job cuts
Volvo Cars plans to cut 2,500 jobs worldwide, including about 2,000 in Sweden, as it tries to reduce costs.
The Swedish carmaker is controlled by China’s Geely and is facing weaker sales in China and the United States.
In the third quarter, its revenue fell 23% and it recorded a net loss, reversing a profit in the same period last year.
The company said competition from local premium car brands hurt its business in China, while US sales faced pressure from tariffs and changes to electric-car incentives.
Volvo shares fell about 24% after it announced the results and job cuts.
Chief executive Håkan Samuelsson said the old approach of building cars in Europe and selling them at higher prices in China no longer works.
The job cuts aim to save 5 billion Swedish kronor, with savings expected to take effect from late 2027.
Volvo Cars shares fell about 24% after the company announced plans to cut 2,500 jobs.
The cuts affect about 6% of its workforce, including around 2,000 jobs in Sweden, and are intended to save 5 billion Swedish kronor.
The company reported weaker sales and revenue, with losses in the third quarter.
CEO Håkan Samuelsson said the old approach of developing cars in Europe and selling them at a premium in China would no longer succeed.
- Who
- Volvo Cars, the Swedish carmaker controlled by China’s Geely.
- What
- The company announced plans to cut 2,500 jobs and its shares fell about 24%.
- When
- 23 October 2026.
- Where
- The job cuts are global, with around 2,000 in Sweden; the shares are listed in Stockholm.
- Why
- Volvo said the cuts would reduce costs and strengthen its recovery plan amid lower sales and financial losses.
This story does not have two clearly opposing sides.
Volvo Cars sold 460,000 vehicles, down 10% from the same period a year earlier, according to El Confidencial.
Volvo Cars recorded a net loss of 5.7 billion Swedish kronor, compared with a net profit in the same quarter a year earlier.
Volvo Cars announced plans to cut 2,500 jobs and reported its latest results.
Volvo Cars shares fell about 24% in trading.
- Planned job cuts
- 2,500 employees
- Share of workforce
- About 6%
- Jobs in Sweden
- Around 2,000
- Planned savings
- 5 billion Swedish kronor (about 450 million euros)
- Share-price fall
- 24% according to the headline; 24.23% according to El Confidencial
5 sources
Volvo in der Krise: Tausende Jobs weg, Aktie stürzt ab
Volvo prepara 2.500 despidos para ahorrar 450 millones en costes en plena crisis del automóvil
Volvo recortará 2.500 empleos tras registrar importantes pérdidas por la escasa demanda del mercado chino
Volvo Cars se desploma en bolsa un 30% tras anunciar el despido de 2.500 trabajadores y confirmar la dominancia absoluta de China en su mercado
Volvo se hunde un 24% en bolsa: "Nadie tendrá éxito vendiendo coches europeos en China"
What people are saying
No one will succeed by following the old recipe of developing cars in Europe and selling them at a premium in China. Those times are gone.
No one will succeed selling European cars in China.
Very disappointing.