Quick answer: Swedish carmaker Volvo Cars said on 23 October 2026 it will cut about 2,500 jobs, around 2,000 of them in Sweden, after it swung to a net loss of SEK 5.7 billion (about €513 million) in the third quarter. Revenue fell almost 23%. The company blames US tariffs, tough Chinese competition and the end of US incentives for electric and plug-in hybrid cars.
The numbers at a glance
| Metric | Q3 2026 |
|---|---|
| Revenue | SEK 66.9bn (≈ €6bn), down nearly 23% |
| Net result | Loss of SEK 5.7bn (≈ €513mn), vs a SEK 4.5bn profit a year earlier |
| Planned job cuts | About 2,500 (≈ 2,000 in Sweden, ≈ 500 elsewhere) |
| New savings target | SEK 5bn (≈ €450mn), full effect by end of 2027 |
How will the job cuts happen?
Volvo says the reductions will come through ending consultant contracts, natural attrition (not replacing people who leave), and voluntary exit packages. Most of the impact will fall on Sweden, where the company has its headquarters in Gothenburg.
Why is Volvo struggling?
- US tariffs: Higher import duties make European-built cars more expensive for American buyers, one of Volvo’s key markets.
- Chinese competition: Chinese EV makers are selling feature-packed electric cars at aggressive prices, in Europe and globally.
- End of US EV incentives: Under President Trump, US tax credits for electric and plug-in hybrid vehicles were removed, cooling demand for exactly the kind of cars Volvo has invested in.
CEO Håkan Samuelsson described a “very tough environment with strong external challenges.” He said volumes were “severely challenged”, so the company must “reinforce our turnaround plan”, adding: “We are convinced that we have the right long-term strategy.”
A second round of cost cuts
This is not Volvo’s first restructuring. Last year it launched an SEK 18 billion cost-cutting programme that included around 3,000 job cuts. In 2024 it also dropped its goal of selling only fully electric cars by 2030, moving to a more flexible mix of EVs and plug-in hybrids.
Volvo Cars is majority-owned by China’s Geely. Leadership is also changing: Klaus Zellmer, currently head of Škoda, will take over from Samuelsson as CEO by 1 October 2027 at the latest.
What it means for the wider auto industry
Volvo’s trouble mirrors pressure across Europe’s car industry. Traditional brands are caught between expensive EV investments, uneven demand, trade barriers and low-cost Chinese rivals. For buyers, this competition could mean more price cuts and promotions on electric cars. For workers and suppliers, it means more uncertainty.
Frequently asked questions
How many jobs is Volvo Cars cutting?
About 2,500 jobs, including roughly 2,000 in Sweden.
Who owns Volvo Cars?
China’s Geely Holding is the majority owner. Volvo Cars is separate from the Volvo Group, which makes trucks and buses.
Is Volvo giving up on electric cars?
No. It dropped its all-electric-by-2030 target in 2024, but it still sells and develops EVs alongside plug-in hybrids.
Sources: Euronews with AFP (23 October 2026); Volvo Cars Q3 2026 interim report.
