Volvo to Cut Up to 1,000 U.S. Jobs

Volvo Group will lay off up to 1,000 workers at plants in Virginia, Pennsylvania, and Maryland, citing declining demand for heavy-duty trucks, a 9% year-over-year drop in vehicle deliveries, economic uncertainty, and trade policy impacts. The layoffs do not affect the Greensboro, North Carolina headquarters but will impact major facilities such as the New River Valley assembly plant, Mack Trucks' Lehigh Valley Operations, and Powertrain Operations in Hagerstown. CEO Martin Lundstedt cited a freight recession and revised the company's 2025 North American truck sales forecast downward from 300,000 to 275,000 units. These cuts follow an earlier round announced in February and occur amid fluctuating orders, inflation, and regulatory uncertainty. Despite the reductions, Volvo plans to invest $700 million in a new truck plant in Monterrey, Mexico, to supplement U.S. production. The company also reported a $500 million decline in Q1 operating income and a drop in share value after announcing the layoffs.