Volvo Group has announced plans to lay off between 550 and 800 workers across three of its U.S. facilities within the next three months. The company attributes the decision to market instability and reduced demand, made worse by tariffs implemented during former President Donald Trump’s administration.
The layoffs will impact workers at the Mack Trucks plant in Macungie, Pennsylvania, as well as Volvo Group facilities in Dublin, Virginia, and Hagerstown, Maryland.
In a statement released Friday, Volvo Group North America explained that the decision is a response to weakening orders for heavy-duty trucks. The company cited freight rate instability, looming regulatory changes, and the financial impact of ongoing tariffs as contributing factors. A spokesperson stated, “We regret having to take this action, but we need to align production with reduced demand for our vehicles.”
Volvo, which is owned by Sweden’s AB Volvo, employs nearly 20,000 people across North America.
This move reflects broader struggles within the automotive and manufacturing industries. Rising production costs, supply chain complications, and global trade tensions have forced several manufacturers to scale back. Economists continue to warn that prolonged policy uncertainty could lead to a broader economic slowdown or recession.
