Volvo Cars has revealed a further 2,500 job cuts amid a slump in sales that has seen its share price crash to record lows.
The Sweden-based firm, majority owned by China's Geely, reported a deeper than expected operating loss of $373m (£279m) over its last quarter amid a deterioration in demand in key markets, particularly in China.
It said the job losses would affect 6% of its workforce, mostly in Sweden.
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They come on top of 3,000 redundancies announced last year as part of a move to save costs which, bosses said on Friday, would now have to be extended.
Shares fell by up to 30%.
Chief executive Hakan Samuelsson told investors: "The third quarter of 2026 was very disappointing and reflects a year that has become far more challenging than originally anticipated.
"Our ongoing turnaround plan therefore needs a decisive reinforcement."
Volvo's challenges are familiar across the automaker sector. Jaguar Land Rover, the UK's largest carmaker, revealed plans to cut 4,000 roles in September.
Demand for electric vehicles (EVs) has been slow globally, despite record fuel prices across large parts of the world because of Middle East energy supply disruption and the effects of the Russia-Ukraine war.
Rising energy costs are forcing up production costs and squeezing margins at the same time.
Other challenges include cheaper China-produced vehicles harming demand for legacy carmakers' EVs and trade tariffs.
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Mr Samuelsson told the Reuters news agency the latest cuts should be completed by mid-2027, although he did not rule out further measures if the turnaround plan fell short of what was needed.
He signalled a focus on maintaining margins, rather than price cuts, to improve the company's fortunes.
(c) Sky News 2026: Volvo Cars in share price crash as 2,500 job cuts follow sales slump
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