STOCKHOLM — Volvo Cars said on Friday it will cut a further 2,500 jobs, mostly in its native Sweden, after plunging to a much bigger-than-expected third-quarter operating loss, sending its shares down almost 30%, Reuters reported.

Source: Reuters, Oct 23, 2026

The automaker reported an adjusted operating loss of 3.7 billion Swedish crowns ($373 million) in the quarter — yaani 370 crore crowns, about 37 crore dollars — compared with a profit of 5.8 billion crowns a year earlier, Reuters said. On a reported basis, CNBC put the operating loss at 5.6 billion crowns. Citi analysts said the consensus forecast had been for a loss of 724 million crowns.

Source: CNBC, Oct 23, 2026

"The third quarter of 2026 was very disappointing and reflects a year that has become far more challenging than originally anticipated. Our ongoing turnaround plan therefore needs a decisive reinforcement," CEO Hakan Samuelsson said, according to Reuters. Samuelsson told CNBC that change in the Chinese market had come faster than expected and that selling global cars developed in Europe would not work in China.

Volvo, majority-owned by China's Geely Holding, has struggled with uneven demand for electric vehicles, mounting tariff pressures and deteriorating conditions in China, where revenue fell by almost 50% in the third quarter, and in the United States. Its gross margin fell to 14.7% from 20.4% a year earlier, and earlier this month it scrapped its guidance for full-year sales volume and cash flow.

The latest measures will affect about 6% of Volvo's workforce, including around 2,000 jobs in Sweden, through ending consultant contracts, natural attrition and targeted exit packages, and come on top of 3,000 job reductions announced earlier. In addition to previously announced cost cuts, Volvo will reduce indirect spending and variable costs by a further 5 billion crowns — yaani 500 crore crowns — with the savings expected to be realised by the end of next year. Samuelsson told Reuters the latest cuts should be completed by mid-2027, and that Volvo would prioritise margins over market share in China rather than join aggressive price competition, taking a similar approach in the US.