What happened
Volvo Cars, controlled by China's Zhejiang Geely Holding Group, has announced plans to cut 2,500 more jobs worldwide. This decision comes after the company reported a quarterly operating loss of $563 million, compared to a profit of $644 million a year earlier. The job cuts are part of the company's efforts to save an additional $503 million by the end of 2027.
The company's revenue in China nearly halved, and global revenue fell 23% to $6.73 billion. The latest restructuring includes ending consultant contracts, natural attrition, and targeted exit packages for employees. Approximately 2,000 job reductions will occur in Sweden, and 500 elsewhere.
Volvo Cars faces intense competition from domestic Chinese automakers, which has led to a decline in sales in China. The company plans to expand cooperation with Geely on vehicle development, production, and purchasing, and will introduce six vehicles designed specifically for the Chinese market. US tariffs have also added pressure on the company, increasing the cost of importing vehicles and weakening demand.
