Volvo Cars plans about 2,500 job cuts and a fresh SEK 5 billion savings drive after third-quarter operating income swung to a SEK 5.6 billion loss.
About 2,000 of the planned positions are in Sweden. Volvo said it will rely on ending consultant contracts, natural staff turnover and targeted exit packages to reduce its workforce. The company gave no completion date for the job cuts; its end-2027 timeline applies to the savings’ full financial effect.
Volvo projects indirect spending will then be nearly 25% below its fiscal 2024 level. The program also targets corporate overhead and research and development costs, along with changes to production and supplier arrangements, the company said.
Revenue fell to SEK 66.9 billion in the third quarter from SEK 86.4 billion a year earlier. Operating income shifted from positive SEK 6.4 billion in Q3 2025 to negative SEK 5.6 billion. Free cash flow was negative SEK 8.9 billion, compared with negative SEK 4.3 billion a year earlier.
Volvo said China revenue was almost half its year-earlier level, citing competition from Chinese alternatives and price pressure. It also pointed to U.S. tariffs and the end of consumer incentives for electrified cars as factors weighing on margins.
The workforce move follows an SEK 18 billion cost-and-cash plan announced in May 2025 that included an estimated reduction of about 3,000 positions, including consultants. By July 2026, Volvo said headcount was about 3,000 positions below its level in the first half of 2025. EconoTimes previously covered the new cuts and quarterly loss.
Volvo Cars President and CEO Håkan Samuelsson said the added measures are intended to lower the company's break-even point and improve cash flow while volumes remain weak. The automaker's next scheduled report, covering the fourth quarter of 2026, is Feb. 4, 2027, at 1 a.m. ET (06:00 UTC), according to its financial calendar.
