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Volvo Cars To Cut 2,500 Jobs As Tariffs And Chinese Competition Hit Profits

by THEFUTURE.TEAM

October 23, 2026

Volvo Cars plans to cut around 2,500 jobs worldwide as rising US tariffs and intensifying competition from Chinese automakers weigh on its financial performance. The Swedish carmaker reported a third-quarter loss, reversing its profit from a year earlier.

Revenue Falls As Volvo Swings To A Loss

Majority-owned by China’s Geely Holding Group, Volvo Cars reported third-quarter revenue of 66.9 billion kronor (€6 billion), down nearly 23% year on year.

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The company recorded a net loss of 5.7 billion kronor (€513 million), compared with a profit of 4.5 billion kronor (€405 million) in the same period last year.

“We continue to operate in a very tough environment with strong external challenges: de-globalisation, hypercompetition and climate change,” Chief Executive Håkan Samuelsson said.

New Cost-Cutting Plan Targets 2,500 Jobs

Volvo Cars has announced an additional savings programme worth 5 billion kronor (€450 million), building on earlier restructuring measures. The plan will eliminate around 2,000 jobs in Sweden and another 500 internationally through consultant reductions, natural attrition and targeted exit packages.

The company expects the full financial benefits of the measures to materialise by the end of 2027.

Samuelsson said the additional cuts would reinforce Volvo’s turnaround strategy, lower its break-even point and improve cash flow amid severely challenged sales volumes.

Tariffs And Policy Changes Pressure EV Strategy

Volvo Cars said the removal of US consumer incentives for fully electric vehicles and plug-in hybrids under President Donald Trump has added pressure on margins.

In 2024, the company abandoned its earlier target of selling only fully electric cars by 2030, reflecting a slower-than-expected transition to electric vehicles and growing pressure on profitability.

“We are convinced that we have the right long-term strategy addressing these challenges,” Samuelsson said, adding that further action was needed in the short term to strengthen the company’s resilience.

Wider Challenges Across The Automotive Industry

Volvo’s difficulties reflect broader pressures facing European automakers, including weaker demand, aggressive pricing by Chinese competitors and changing government policies in key markets.

Last year, Volvo announced an 18-billion-kronor (€1.62 billion) cost-cutting programme that included around 3,000 job cuts worldwide.

The company also announced in September that Klaus Zellmer, chief executive of Škoda Auto, would succeed Samuelsson no later than 1 October 2027.

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Cyprus Tourism Recovers After Difficult Start To 2026

by THEFUTURE.TEAM

October 26, 2026

Cyprus’ tourism sector is recovering after a sharp decline in arrivals earlier this year, but Deputy Minister of Tourism Kostas Koumis has warned that the industry remains vulnerable to external shocks. Presenting the department’s €59.4 million budget for 2027, he stressed that continued growth cannot be taken for granted.

Arrivals Recover After A Sharp Early-Year Decline

Tourist arrivals fell by 5.6% in the first nine months of 2026 compared with the same period last year, Koumis said. This marks a significant improvement from the 17.9% decline recorded during the first four months, although the recovery remains incomplete.

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Despite the setback, arrivals between January and September were 4.1% higher than in 2024 and 8.5% above 2023 levels. Koumis said the figures indicated that the sector had entered a recovery phase, but added that more work was needed to restore demand in certain markets.

An Unprecedented Shock For The Industry

Koumis described 2026 as one of the most difficult years for Cyprus’ tourism sector in decades. External developments triggered widespread cancellations and a sharp slowdown in bookings during March and April, with tens of thousands of reservations cancelled and new bookings largely stalling.

“2026 will undoubtedly remain in the history and memory of those working in the sector as a year during which our country’s tourism industry was called upon to face an unprecedented crisis as a result of external factors,” he told lawmakers.

Budget Focuses On Promotion And Development

Around 62% of the proposed 2027 budget will go towards promoting Cyprus and strengthening its tourism offering. Funding will support marketing campaigns, participation in international tourism fairs and incentive schemes designed to stimulate demand and improve the island’s competitiveness in key markets.

Tourism Revenue Remains Below 2025 Levels

Tourism receipts fell by 7% in the first seven months of 2026 compared with the same period in 2025, according to the Cyprus Statistical Service. However, revenue remained 9.2% above 2024 levels and 13.8% higher than in 2023.

Koumis said the final outcome would depend on performance during the remaining months. If receipts follow a trajectory similar to 2025, he expects the full-year decline to be limited to between 3% and 4%, which he described as “a very satisfactory performance” under the circumstances.

Recovery Does Not Guarantee Future Growth

September recorded what Koumis described as the strongest September on record for tourist arrivals in Cyprus. However, he cautioned against complacency, noting that the disruption earlier in the year demonstrated how quickly external events can affect the sector.

“Success in tourism can never be taken for granted,” he said.

The government aims to ensure that tourism continues to benefit Cyprus’ economy, businesses and local communities in 2027. The proposed budget places particular emphasis on promotion and product development, reflecting a strategy focused on consolidating the recovery while preparing the sector for further uncertainty.