Volvo Cars to Cut 2,500 Jobs After Quarterly Net Loss

Volvo Cars announced plans on October 23 to cut about 2,500 jobs worldwide and add five billion kronor in savings measures after reporting a third-quarter net loss. The company said the reductions, including roughly 2,000 jobs in Sweden, would be part of an effort to lower costs and strengthen its turnaround plan. The automaker reported revenue of 66.9 billion kronor for the quarter, nearly 23% below the same period a year earlier. It recorded a net loss of 5.7 billion kronor, compared with a net profit of 4.5 billion kronor a year earlier. Volvo said the additional savings would come from reductions in indirect spending and variable costs. It expects the measures to lead to about 2,500 job cuts, using consultant-contract endings, natural attrition and targeted exit packages. The company said it expects the full financial effects of the plan by the end of 2027. The company attributed pressure on its business and margins to US tariffs, competition from Chinese brands and the removal of US incentives for electric vehicles and plug-in hybrids. In an earnings statement, chief executive Håkan Samuelsson said the business faced external challenges and that the turnaround plan needed...