Volvo: Slump in sales in China forces car manufacturer to cut 2,500 jobs

The Swedish car manufacturer Volvo Cars is cutting 2,500 jobs worldwide after a sharp drop in sales in the quarter.

CEO Hakan Samuelsson wants to reduce annual costs by around 5 billion Swedish crowns (450 million euros), the company announced in Gothenburg.

In Sweden alone, 2,000 jobs will be lost. Volvo wants to make job cuts easier with severance packages.

In the third quarter, the car manufacturer, which is under the control of the Chinese company Geely, slipped into the red due to the crisis in China.

Sales fell by 11 percent to around 141,300 vehicles delivered, and sales fell by almost a quarter to 66.9 billion crowns.

The loss before interest and taxes was 5.6 billion crowns - a year earlier, Volvo recorded an operating profit of 6.4 billion.

The bottom line was a loss of 5.7 billion crowns (513 million euros), after Volvo had made a profit of 4.5 billion crowns in the comparable period.

In addition to China, the USA also weakened.

The problems had already become apparent. At the beginning of October, Samuelsson received the annual forecast. “The third quarter was very disappointing,” he wrote in his letter to shareholders.

In addition to China, business in the USA also weakened. The manager explained that two central markets did not contribute to profits.

In China, the market for established premium brands is shrinking significantly. Volvo's sales there almost halved compared to the previous year.

German manufacturers such as Mercedes-Benz, BMW and Audi are also struggling with tough competition and falling prices in what was once a growth market.

In the USA, Volvo continues to be burdened by import tariffs on EU cars as well as the loss of incentives to buy vehicles with electric drives.

Samuelsson had already cut jobs last year. Of the 43,000 employees in the same period last year, around 39,300 remained in the first nine months of 2026.

Swedish truck maker Volvo AB has been separate from Volvo Cars' automaker for decades. In contrast to the car manufacturer, it has recently increased significantly in profitability.