Volvo Cars shares dropped sharply on Oct. 23 after the Swedish automaker reported a quarterly operating loss and outlined new cuts, with reports putting the session's decline near 24%.
The company reported an operating loss of SEK 5.6 billion for July through September, reversing a SEK 6.4 billion profit a year earlier. Revenue declined 23% to SEK 66.9 billion from SEK 86.4 billion, while net income shifted to a SEK 5.7 billion loss from a SEK 4.5 billion profit. Free cash flow was negative SEK 8.9 billion, compared with negative SEK 4.3 billion a year before.
On an adjusted measure that excludes income from joint ventures and associates and items affecting comparability, the operating loss was SEK 3.7 billion, against a SEK 5.8 billion profit in the same quarter of 2025.
Investing.com reported that the shares fell 27.9% to SEK 10.18 in early Stockholm trading. CNBC put the end-of-session decline at 24.2%, while Reuters reported a 24% fall that day.
China revenue dropped to SEK 7.5 billion from SEK 14.1 billion. Volvo Cars cited competition from Chinese alternatives and pricing pressure in China. It also said U.S. tariffs and the removal of consumer incentives for electrified cars weighed on margins.
The company's planned workforce reductions cover about 2,500 positions worldwide, including 2,000 in Sweden. Volvo said it would use consultant contract terminations, natural attrition and targeted exit packages. The company is also seeking another SEK 5 billion in savings from indirect spending and variable costs. It said the program is intended to let it break even at a lower level of activity and improve cash generation, with the full financial impact expected by the end of 2027.
The new measures follow a May 2025 cost-and-cash plan totaling SEK 18 billion that included an estimated reduction of about 3,000 positions. Volvo expects indirect spending to be almost 25% below its 2024 level once the measures take full effect. The company's next quarterly report is scheduled for Feb. 4, 2027.
