Volvo Group North America has announced plans to lay off at least 550 employees, with the potential for the number to reach up to 800. These job cuts will affect sites in Macungie, Pennsylvania; Dublin, Virginia; and Hagerstown, Maryland. The layoffs are attributed to an uncertain demand situation caused by tariff plans introduced by the U.S. President, which are disrupting the trade system and threatening to increase manufacturing costs in the vehicle industry.
Concerns about a potential recession have led Volvo to become one of the first companies in the car and truck sector to announce job cuts. The Volvo Group is part of Sweden’s AB Volvo (VOLVb.ST) and has a workforce of nearly 20,000 employees in North America.
Additionally, changes in freight rates, demand, and various regulations, including tariffs, are expected. As a result, demand for heavy trucks is likely to be negatively affected.
While Volvo Group has expressed sadness over having to take such drastic measures, the company acknowledges that it sees no other way to prepare for the future amid decreasing demand for vehicles. The current layoffs are part of its cost-cutting strategy.
In Pennsylvania, an estimated 250 to 350 employees may be affected, while a similar number will be impacted in Dublin, and between 50 to 100 employees in Maryland. The company’s global workforce totals around 100,000, including about 20,000 employees in the United States alone.
