Company reports a third-quarter operating loss of SEK 5.6 billion and expands its cost-cutting plan

Volvo Cars announced plans to eliminate approximately 2,500 jobs after reporting an operating loss of 5.6 billion Swedish kronor in the third quarter of 2026. The result reversed an operating profit of SEK 6.4 billion a year earlier, as revenue in China plunged nearly 50%.

The Swedish automaker’s global revenue fell 23% year over year to SEK 66.9 billion, below the SEK 73.7 billion expected by analysts surveyed by FactSet.

Adjusted operating results also deteriorated. Volvo posted a loss of SEK 3.7 billion, compared with a profit of SEK 5.8 billion in the third quarter of 2025. This measure excludes income from joint ventures and associates, as well as items affecting comparability.

China was a major source of pressure on the company’s performance. According to Volvo, intense competition from domestic manufacturers and aggressive pricing weighed on revenue. In the United States, tariffs and the withdrawal of consumer incentives for electrified vehicles squeezed margins.

In response, Volvo plans to reduce spending by an additional SEK 5 billion through workforce reductions, lower administrative expenses and operational changes.

Of the approximately 2,500 positions being eliminated worldwide, 2,000 are based in Sweden. The reductions will involve ending consultant contracts, natural employee attrition and targeted exit packages.

The company expects the measures to deliver their full financial benefits by the end of 2027.