Volvo Axes 800 U.S. Jobs After $500 Million Profit Plunge — Truck Demand Takes a Hit

Swedish commercial vehiclemaker Volvo Group has announced plans to cut up to 800 jobs across its US operations following a sharp decline in first-quarter earnings, as per media reports. The move is necessitated due to softening demand for heavy-duty trucks and rising global trade tensions.

As part of its response, Gothenburg, Sweden-based firm stated that the job cuts will roll out over the next three months, affecting workers at Mack Trucks in Macungie, Pennsylvania, and other Volvo Group facilities in Dublin, Virginia, and Hagerstown, Maryland.

CEO Martin Lundstedt acknowledged the challenges in a statement, citing a 9% year-over-year decline in vehicle deliveries and growing uncertainty around U.S.-China tariffs. "The market is changing, and we need to adjust our operations accordingly," Lundstedt said. “Our focus is on aligning production and costs to the current demand environment.”

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The Swedish automotive giant reported a $500 million dip in operating income for the first quarter of 2025, with profits falling to SEK (Swedish Krona) 13.3 billion (around $1.39 billion), compared to SEK 18.2 billion in the same period last year. 

The results fell short of market expectations, and the company has revised its outlook for the North American truck market downward.

Volvo now expects total sales of heavy-duty trucks in North America to reach 275,000 units in 2025 — down from its earlier projection of 300,000. While the company maintained its European forecast at 290,000 units, it warned that both regions remain vulnerable to economic volatility and shifting trade policies.

The layoffs and revised outlook come amid broader concerns in the industry about slowing economic growth, inflationary pressures, and the impact of new tariffs on production and cross-border supply chains. 
Following the news, Volvo shares dipped 1.7% in early trading.

Despite current headwinds, the company emphasized it remains committed to long-term investment and innovation in clean transport solutions. "We're navigating a difficult quarter, but we're not standing still," Lundstedt added.