Volvo Cars plans to cut 2,500 jobs — CNBC

Swedish automaker Volvo Cars said on Friday that it plans to cut 2,500 jobs. As CNBC reports, the announcement came amid third-quarter results affected by a significant decline in the Chinese market.

Pressure on quarterly results

The company linked the planned cuts to more challenging market conditions and pressure on profits in the third quarter. CNBC describes the decline in the Chinese market as sharp.

According to the publication, the situation in China was one of the factors affecting Volvo Cars' quarterly financial results. The company also separately mentioned more challenging conditions in the U.S. market.

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Market reaction

Amid the announcement of the cuts and quarterly results, Volvo Cars shares fell by 25%. Volvo Cars said the market environment in China and the United States had deteriorated.

The manufacturer noted that more challenging conditions in these markets had negatively affected its free cash flow. No details regarding the timing of the planned cuts were provided in the available statement.