On April 19, Volvo Group’s U.S. subsidiary announced plans to lay off up to 800 workers at three truck assembly plants across the country. This reduction represents approximately 10% of the total workforce at these facilities.
The restructuring will impact two Volvo Group plants in Pennsylvania and one each in Virginia and Maryland, aiming to reduce its workforce by 550 to 800 employees within the next three months. A Volvo Group spokesperson emphasized the necessity of the layoffs, citing the need to adjust production in response to declining demand. Industry projections for 2024 indicate a significant downturn, with North American heavy truck orders expected to fall by 18% year-over-year to around 45,000 units.
Beyond the slump in the heavy-duty truck market, analysts suggest that the Trump administration’s new tariff policies have introduced uncertainty, playing a crucial role in the decision to downsize. Despite these challenges in North America, Volvo Trucks has maintained its industry-leading position in Europe’s heavy truck market for vehicles over 16 tons, securing a 17.9% market share in 2024. The brand has shown particularly strong performance in key markets including the UK, France, Germany, Poland, and Spain.
