Volvo shares plummet amid rising losses and job cuts
Kyiv • UNN
Volvo Cars reported a loss of 3.7 billion kronor and will cut another 2,500 jobs. The company's shares fell by nearly 30%.
Shares of Volvo Cars fell by nearly 30% on Friday after the Swedish automaker reported an operating loss in the third quarter that significantly exceeded expectations. The company also announced plans to cut another 2,500 jobs — mainly in its home market of Sweden, UNN reports, citing Reuters.
The publication notes that the drop, which sent the shares to new all-time lows, comes amid serious challenges for the company, whose controlling stake is owned by China’s Geely Holding group. These include unstable demand for electric vehicles, growing tariff pressure, and difficult market conditions in China.
"The third quarter of 2026 was very disappointing and reflects a year that has become much more challenging than initially expected. Therefore, our current recovery plan requires decisive reinforcement," CEO Håkan Samuelsson said.
In the reporting quarter, the automaker posted an operating loss of 3.7 billion Swedish kronor ($373 million), compared with a profit of 5.8 billion kronor a year earlier. According to Citi analysts’ estimates, the consensus forecast had projected a loss of 724 million kronor.
CEO Håkan Samuelsson returned from retirement in 2025, signing a two-year contract to lead Volvo out of its crisis. However, despite aggressive cost-cutting, a regionalization plan, and deeper cooperation with Geely, the situation has only worsened. The company said it needed to cut costs by an additional 5 billion kronor.
The latest measures will affect around 6% of Volvo’s workforce, including approximately 2,000 jobs in Sweden. This will be achieved by ending contracts with consultants, through natural attrition, and via voluntary severance programs. These cuts are in addition to the previously announced layoffs of 3,000 employees.
Samuelsson told Reuters that the reduction process should be completed by mid-2027, although he did not rule out taking additional measures in the future.
In addition
Klaus Zellmer, the former head of Skoda, who will replace Samuelsson next year, must halt the decline of one of Europe’s best-known automotive brands. "Zellmer now faces an even more difficult task than when his appointment was announced a month ago," Bernstein analysts said, adding that, in their view, no improvement in the situation should be expected in the near term.
The launch of the electric Volvo EX60 — a version of the XC60 bestseller that plays a key role in the company’s recovery strategy — has faced serious delays due to problems with battery assembly. According to the company, only around 5,000 units have been produced so far out of the 40,000 planned for this year.
This month, the company abandoned its forecasts for annual sales and cash flow. Volvo said that in its key Chinese market it would prioritize profitability over market share and would not take part in the price war intensifying among local competitors. Meanwhile, the company’s revenue fell by nearly 50% in the third quarter.
According to Volvo, gross margin fell to 14.7% in the third quarter, compared with 20.4% a year earlier.
Six of the 13 models Volvo plans to launch by the end of the decade will be developed specifically for China. According to Samuelsson, until these new models reach the market, no significant improvement in the group’s performance in the region should be expected.
"Perhaps we should have recognized earlier the need for a more regional approach in China; we also should have anticipated the introduction of tariffs earlier, which points to the need for deeper localization of production in the United States," Samuelsson said.
"So for now, this is a weak point that we are working to address."