Volvo Group plans to lay off between 550 and 800 employees at three U.S. facilities over the next three months, citing weakened demand and ongoing market uncertainty, the company said on Friday.
The layoffs will impact the Mack Trucks plant in Macungie, Pennsylvania, and two additional Volvo Group sites in Dublin, Virginia, and Hagerstown, Maryland. The company, a subsidiary of Sweden’s AB Volvo, employs nearly 20,000 people across North America.
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“Heavy-duty truck orders continue to be negatively affected by market uncertainty about freight rates and demand, possible regulatory changes, and the impact of tariffs,” a spokesperson for Volvo Group North America said in an emailed statement. “We regret having to take this action, but we need to align production with reduced demand for our vehicles.”
The announcement comes as manufacturers in the automotive and heavy-duty truck industries face increased production costs and volatile order volumes, in part due to tariffs imposed during the Trump administration. The ongoing effects of trade policy have contributed to wider concerns about economic stability and a potential recession.
Volvo Group’s decision reflects broader industry pressures as companies adjust operations to meet fluctuating market conditions. The spokesperson added that the company will continue to monitor demand and make adjustments as necessary to ensure operational efficiency.