Volvo Cars adds 2,500 layoffs, with an operating loss of 5.5 billion kronor in the third quarter

On October 23, Swedish automaker Volvo Cars announced an additional layoff of 2,500 employees, equivalent to 6% of its total workforce. The financial report released on the same day for the period from July to September 2026 showed an operating loss of 5.5 billion Swedish Krona, compared to a profit of 6.4 billion Swedish Krona in the same period last year; sales fell 23% year-on-year to 66.8 billion Swedish Krona; the final profit and loss was a loss of 4.8 billion Swedish Krona, compared to a profit of 5.1 billion Swedish Krona in the same period last year. The company's stock price once dropped by 30%.

The financial report indicated that sales in the Chinese market fell by 41%, and global sales declined by 11%, mainly affected by weak sales in the Chinese and American markets. The sluggish sales of high-end models and the increased proportion of lower-priced models led to a deterioration in profitability, and the impairment losses from fuel consumption credits due to the relaxation of decarbonization regulations in the U.S. also dragged down profitability. Volvo Cars CEO Håkan Samuelsson stated at a press conference on the same day that the old strategy of developing global models in Europe and then selling high-end cars in China is no longer viable; that era has ended.