On October 23, Volvo Cars unveiled its financial results for the third quarter of 2026, revealing a decline in revenue to SEK 66.9 billion, down from SEK 86.4 billion recorded in the corresponding period of the previous year. The company also reported an operating loss of SEK 5.6 billion, a stark contrast to the SEK 6.4 billion profit achieved in the same quarter last year. Furthermore, basic earnings per share plunged to a loss of SEK 1.63, compared to a profit of SEK 1.75 during the same timeframe the preceding year. Notably, in the Chinese market, Volvo Cars witnessed a roughly 50% year-on-year decrease in revenue.

In response to these financial challenges, Volvo Cars has outlined a strategy to further slash indirect expenses and variable costs by SEK 5 billion, building upon its prior cost-saving endeavors. These initiatives will encompass terminating consulting agreements, leveraging natural attrition, and offering targeted severance packages to employees. As a result, the company anticipates a structural reduction of approximately 2,500 jobs worldwide, with 2,000 of these positions based in Sweden.