Volvo shares plunged more than 26% on Friday, October 23, sending the stock to record lows after the Swedish carmaker reported a third-quarter loss and announced 2,500 additional job cuts under a new 5 billion kronor savings plan.

The selloff extended a painful year for Volvo Cars, which is controlled by China's Geely Holding. The stock has lost more than two-thirds of its market value since the start of the year.

Deepening Quarterly Loss

The Gothenburg-based company reported third-quarter revenue of 66.9 billion Swedish kronor, down 22.6% from 86.4 billion kronor a year earlier. Its operating result swung from a 6.4 billion kronor profit to a 5.6 billion kronor loss, and the company posted a net loss of 5.73 billion kronor, or about $573 million.

Volvo's adjusted operating loss reached 3.7 billion kronor, against analysts' expectations of 724 million kronor. The gross profit margin fell to 14.7% from 20.4% a year earlier, while the company reported a cash outflow of 8.9 billion kronor, more than double the figure recorded in the third quarter of 2025. That combination of margin compression and a heavier cash outflow forms the financial backdrop for the cost measures announced alongside the results.

In separate earnings news, Tesla reported a 56% decline in operating profit in its latest results.

China Slump and Tariff Pressure

Revenue in China fell nearly 50% as local brands intensified price competition. US tariffs and reduced electric vehicle incentives added further pressure on margins. Volvo had already withdrawn its 2026 sales and cash-flow forecasts on October 2, leaving the company without published 2026 targets heading into the report.

2,500 More Jobs to Go

The latest reductions will remove about 2,000 positions in Sweden and 500 elsewhere, affecting roughly 6% of the company's workforce. Volvo said it will end consulting contracts, leave some vacated roles unfilled and offer targeted exit packages to affected staff. A recent automotive software study described wider development and testing problems across the industry.

The new cuts follow an earlier plan to eliminate 3,000 jobs. Volvo is now targeting an additional 5 billion kronor in savings from overhead and other costs, and expects the full financial benefit of the measures by the end of 2027 — a deadline that gives readers a concrete checkpoint for tracking how the restructuring progresses.

Product Plans Through 2030

Despite the restructuring, Volvo plans to launch 13 new vehicles by 2030, including models designed specifically for China. In the broader battery industry, companies continue to develop new production methods, with QuantumScape outlining plans for a 100-megawatt-hour solid-state battery line in 2028.

Volvo will also work more closely with Geely on six China-focused models and begin producing two of them next year. In the United, the company plans to build the XC60 in South Carolina from early 2027, while introducing a lower-priced electric car in Europe later that same year. Those launch dates, together with the end-2027 savings deadline, mark the milestones ahead as the company carries out its restructuring.