On the Dash:
- Volvo Cars stopped external office hiring worldwide and paused internal recruitment, according to an internal memo.
- Net cash dropped to SEK 10.1 billion ($1.01 billion) in June from SEK 26.9 billion last year.
- Retail sales dropped 7.4% from June through August as Volvo protects pricing over volume.
Volvo Cars has stopped external hiring for office jobs worldwide, according to an internal memo first reported by Automotive News. The memo also pauses internal recruitment and limits spending on external hiring. However, factories and related operations are unaffected. According to the report, the company has about 20,000 white-collar employees worldwide.
Net cash fell more than 60% this year
At the end of June, net cash dropped to SEK 10.1 billion (about $1.01 billion), and according to the company’s second-quarter report, it stood at SEK 26.9 billion (about $2.69 billion) at the end of 2025. Volvo Cars said working capital drove most of the decline.
The automaker tied much of the second-quarter cash outflow to a planned inventory build-up for the new EX60. It expects the full year to end near break-even on free cash flow. Second-quarter revenue fell 17% to SEK 77.7 billion (about $7.76 billion), with an operating margin of 1.1%, as CBT News reported in July.
Sales fell 7.4% as China and U.S. weaken
Retail sales fell 7.4% to 148,239 cars from June through August, according to the company’s rolling sales report. The company pointed to China’s market downturn and weaker U.S. demand for electric and plug-in hybrid cars. The company said it is prioritizing transaction prices over volume growth. Electrified models grew 13% and made up 53.5% of sales.
Office cost cuts keep piling up
Volvo Cars announced about 3,000 job cuts in May 2025, mostly office roles. It said on August 31 that it will close its Stockholm office on March 1, 2027. Work for about 450 employees moves to Gothenburg, according to Reuters.
On September 17, the company announced a long-term operating margin target of beyond 8% with 13 new models by 2030 but gave no date for reaching the target. Volvo Cars also named Škoda Auto CEO Klaus Zellmer as its next President and CEO. He will succeed Håkan Samuelsson by October 1, 2027. Shares have traded near record lows and are down more than 45% this year. Third-quarter results are due October 23.
