Volvo Group has announced plans to reduce its workforce by up to 800 employees across three U.S. facilities over the next three months, citing continued market uncertainty and a drop in demand—challenges worsened by tariffs implemented during the Trump administration.
The layoffs will affect the Mack Trucks plant in Macungie, Pennsylvania, as well as Volvo Group operations in Dublin, Virginia, and Hagerstown, Maryland. In a statement released Friday, April 18, Volvo Group North America confirmed that between 550 and 800 positions will be cut.
A subsidiary of Sweden-based AB Volvo, the company currently employs nearly 20,000 people across North America. The decision to downsize comes as the broader automotive and manufacturing sectors continue to face rising costs, driven in part by shifting trade policies and lingering supply chain disruptions.
Economists point to the uncertainty surrounding former President Trump’s trade strategy—including tariffs that have driven up production costs—as a factor negatively impacting both business operations and consumer confidence. These economic pressures have raised concerns about a potential slowdown or recession.
Volvo specifically cited a decline in heavy-duty truck orders, influenced by volatile freight rates, upcoming regulatory changes, and the financial strain of tariffs. “We regret having to take this action, but we need to align production with reduced demand for our vehicles,” a company spokesperson told Reuters.
This move adds to the growing list of challenges facing manufacturers as they navigate global trade tensions, unstable market conditions, and persistent logistical hurdles.