Volvo Cars swings to third-quarter loss, plans job cuts
STOCKHOLM: Volvo Cars swung to an operating loss in the third quarter as a slow production ramp-up of its new EX60 electric SUV and weak demand in China and the United States hit sales, and said on Friday it will cut some 2,500 jobs. The company, majority-owned by China’s Geely Holding , swung to an adjusted operating loss of 3.7 billion Swedish crowns ($373 million) for the third quarter, from a…
Volvo Cars reported a third-quarter operating loss of 3.7 billion Swedish crowns ($373 million) in its earnings report, marking a shift from a profit of 5.8 billion crowns the previous year. The Swedish automaker's CEO, Hakan Samuelsson, acknowledged that the third quarter of 2026 was "very disappointing," attributing the poor performance to a slower ramp-up of the new EX60 electric SUV and weak demand in key markets like China and the United States.
In response to the challenging market conditions, Volvo plans to cut approximately 2,500 jobs, in addition to earlier cost reductions and variable cost cuts totaling 5 billion crowns, expected to materialize by the end of next year. Earlier this month, the company abandoned its full-year sales volume and cash flow guidance due to an increasingly challenging market environment and a deteriorating outlook for the near term.
Volvo's share price plummeted to a record low this week, suffering a 54% decline year-to-date, as the company grapples with issues such as tariffs, waning EV demand, and high development costs.
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