Volvo Group North America, a part of Sweden’s AB Volvo, is planning to lay off up to 800 workers across three U.S. facilities over the next three months.
The company shared this news with employees recently. These layoffs are part of a larger trend in the auto and truck industry reacting to U.S. President Donald Trump’s tariffs.
Volvo Group to Cut Jobs Amid Market Uncertainty
According to a report by Reuters, Volvo Group North America announced it will lay off 550 to 800 workers.
These cuts will affect its Mack Trucks plant in Macungie, Pennsylvania, and two other sites in Dublin, Virginia, and Hagerstown, Maryland.
The layoffs are due to concerns over market uncertainty and reduced demand caused by tariffs introduced by Trump.
About Volvo Group North America
Volvo Group North America is a division of Sweden-based AB Volvo. As per its website, the company employs around 20,000 people across North America.
President Trump’s trade policies, including tariffs on imported goods, have disrupted the global trade system, which has been in place for over 75 years.
These sudden changes have lowered confidence among both consumers and businesses, prompting economists to warn of a potential recession.
Falling Orders Impacting the Truck Industry
The layoffs at Volvo are part of a broader trend in the vehicle manufacturing sector, which is struggling with the impact of tariffs on imported parts.
These tariffs are increasing production costs for automakers.
A Volvo Group North America spokesperson said in an emailed statement that orders for heavy-duty trucks are falling due to several reasons: uncertain freight rates, possible new regulations, and tariff effects.
“We regret having to make this decision, but we must adjust production to match the lower demand for our vehicles,” the spokesperson added.
