Volvo Cars said Friday it plans to cut 2,500 jobs after a sharp decline in its Chinese market weighed on third-quarter earnings.
The Swedish automaker reported an operating loss of 5.6 billion Swedish Kronor ($563.7 million) in the third quarter, down from an operating profit of 6.4 billion Swedish Kronor in the previous period
The company cited a deteriorating environment led by “tougher” market conditions in China and the U.S., which “negatively affected free cash flow.” Volvo Cars shares were last down over 28% after the European market opened. These results have pushed Volvo Cars to cut 5 billion Swedish Kronor in costs by eliminating 2,500 jobs globally, with 2,000 of those jobs based in Sweden. The company expects to see natural attrition and offer exit packages to employees to reduce its workforce.
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