Volvo Cars announces an additional 2,500 job cuts; Q3 operating loss reaches 5.5 billion SEK.

Huo Xing Finance reports that on October 23, Swedish automaker Volvo Cars announced an additional reduction of 2,500 jobs, equivalent to 6% of its total workforce. On the same day, its financial results for the third quarter of 2026 (July to September) showed an operating loss of SEK 5.5 billion, compared to a profit of SEK 6.4 billion in the same period last year; revenue fell 23% year-over-year to SEK 66.8 billion; and net loss amounted to SEK 4.8 billion, compared to a net profit of SEK 5.1 billion in the prior-year period. The company’s stock price dropped by as much as 30%. The report indicated that sales in China declined by 41%, and global sales fell by 11%, primarily due to weak demand in the Chinese and U.S. markets. Profitability was further pressured by sluggish sales of premium models and a rising proportion of lower-priced vehicles, as well as impairment losses from fuel economy credits resulting from relaxed decarbonization regulations in the United States. At a press conference on the same day, Volvo Cars CEO Håkan Samuelsson stated: “The old strategy of developing global models in Europe and selling premium vehicles in China no longer works—those days are over.”