Volvo Car Shares Plunge 26% After Automaker Cuts 2,500 More Jobs

Volvo Car shares fell 26% in early Stockholm trading after the automaker said it would cut another 2,500 jobs, about 6% of its workforce, under an expanded turnaround plan. The company announced the move Friday, citing continued weakness in China and the U.S. The cuts, including 2,000 in Sweden, target roughly $504.5 million in additional savings through ended consultant contracts, natural attrition and exit packages. Volvo completed a $1.82 billion cost-cutting plan last year with 3,000 job cuts and had already made further savings under a separate $504.5 million program. "With severely challenged volumes, we need to reinforce our turnaround plan with additional decisive actions," CEO Hakan Samuelsson said. Volvo reported an adjusted operating loss of $373.3 million for the third quarter, wider than the $76.5 million loss expected in a FactSet forecast. Revenue fell 23% to $6.75 billion, below the expected $7.44 billion. Samuelsson said China revenue fell nearly 50% year-over-year. The company scrapped its full-year guidance earlier this month.