Volvo to slash 2,500 jobs

Volvo Cars is preparing to cut 2,500 jobs, equivalent to about six per cent of its workforce, after reporting an adjusted operating loss of about NZ$653 million in the third quarter of this year.

The company says it plans to end consultant contracts and offer “targeted exit packages” to employees globally, with about 2,000 roles under threat in its native Sweden.

The move comes as Volvo Cars faces growing competition from Chinese manufacturers and sales in the US are suffering from tariffs and weak demand, reports Reuters.

The group’s third-quarter loss of 3.7 billion Swedish crowns (about NZ$653m) was down from a profit of 5.8 billion crowns a year earlier.

Hakan Samuelsson, chief executive, says: “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.”

He told Reuters the cuts should be completed by mid-2027.