Volvo Group says it will lay off up to 800 workers at its U.S. plants in the next three months.
Volvo announced the decision in a Friday April 18, 2025, in a statement released by its North American division.
The company blamed market instability and weakening demand, worsened by trade tariffs introduced under former President Donald Trump.
The affected locations include Mack Trucks plant in Macungie, Pennsylvania, and facilities in Dublin, Virginia, and Hagerstown, Maryland.
Volvo North America confirmed that between 550 and 800 workers will lose their jobs by mid-year.
The firm, part of Sweden’s AB Volvo, employs nearly 20,000 people across North America.
Company officials said U.S. tariffs had significantly increased production costs and impacted customer orders.
Volvo cited declining demand for heavy-duty trucks and regulatory uncertainty as key reasons for the layoffs.
Freight rate volatility and supply chain disruptions also continue to hurt industry production.
“We regret this action but must match production to falling demand,” a Volvo spokesperson said via email.
The auto sector in the U.S. continues to suffer under fluctuating trade rules and economic concerns.
Economists blame Trump-era tariffs for dampening business confidence and raising recession fears.
Analysts warn of more job losses across manufacturing if trade policies don’t stabilize soon.
Volvo’s layoffs mark another blow to American workers already grappling with economic uncertainty.
Other automakers have also raised alarms over the rising cost of raw materials and imported components.
Manufacturers say tariffs on steel and electronics have hurt profit margins and disrupted supply lines.
Industry insiders fear more production cuts may follow if demand doesn’t improve by the third quarter.
Unions representing Volvo workers have not yet released a formal response to the layoff announcement.
The company says it will offer support and severance packages to affected workers during the transition.
Volvo insists it remains committed to its U.S. operations despite the current downturn.
