Volvo Cars to cut 2,000 roles in Sweden

Volvo Cars plans to remove about 2,000 roles in Sweden as part of a worldwide reduction of 2,500 jobs, after reporting a SEK 5.6 billion operating loss for the third quarter.

The carmaker’s announcement on Friday sets out three ways to reduce staffing: ending consultant contracts, allowing jobs to disappear through natural attrition and offering targeted exit packages to employees. The total therefore does not represent 2,000 announced compulsory redundancies in Sweden.

The reductions form part of an additional SEK 5 billion savings programme. Volvo says the full financial effect will arrive by the end of 2027, when its overall indirect spending should be almost a quarter below the 2024 level.

The company reported quarterly revenue of SEK 66.9 billion, down from SEK 86.4 billion a year earlier. Its operating result swung from a SEK 6.4 billion profit to the loss. Volvo attributes the deterioration partly to fierce price competition in China and tariffs and withdrawn electric-car incentives in the United States.

Sveriges Radio reports that chief executive Håkan Samuelsson expects the staffing reductions to be completed by the middle of next year. That is earlier than the company’s deadline for achieving the full savings.

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