Volvo Group has announced plans to lay off up to 800 workers at its U.S. facilities in the coming months, citing a combination of declining market demand and the impact of trade tariffs. The move will affect operations in Pennsylvania, Virginia, and Maryland, as the company adjusts production levels in response to shrinking orders in the trucking and transportation sectors.
The Swedish manufacturer, which owns brands like Mack Trucks, pointed to uncertainty in freight rates, regulatory changes, and rising production costs stemming from tariffs imposed on imported materials. These factors have significantly impacted demand for heavy-duty trucks in the U.S. and prompted the company to reassess its labor needs.
Volvo’s decision comes amid broader signs of stress in the commercial vehicle industry. As inflation and interest rates continue to weigh on investment in logistics and transportation, companies across the supply chain are reducing output and cutting jobs. Analysts suggest the layoffs may be a harbinger of more belt-tightening across the sector.
With nearly 20,000 employees across North America, Volvo emphasized that the decision was not taken lightly. However, company officials said the layoffs were necessary to align production with market conditions and preserve long-term stability. The affected employees are expected to be let go over the next three months.
