Volvo Group has announced plans to lay off between 550 and 800 workers across three of its U.S. facilities over the next three months, citing ongoing market uncertainty and weakening demand—further strained by tariffs introduced during former President Donald Trump’s administration.
The affected facilities include the Mack Trucks plant in Macungie, Pennsylvania, and two Volvo Group locations in Dublin, Virginia, and Hagerstown, Maryland.
In a statement released Friday, April 18, Volvo Group North America—part of Sweden’s AB Volvo—confirmed the workforce reductions. The company currently employs around 20,000 people in North America.
The layoffs come as the broader automotive and manufacturing sectors face increasing pressure from volatile trade policies, escalating production costs, and global supply chain disruptions. Economists have noted that uncertainty surrounding U.S. trade strategies has dampened both business investment and consumer confidence, raising concerns about a potential economic downturn.
Volvo cited a significant drop in heavy-duty truck orders as a key reason behind the move, pointing to unstable freight rates, looming regulatory changes, and the continued impact of tariffs.
“We regret having to take this action, but we need to align production with reduced demand for our vehicles,” a Volvo spokesperson said in a statement to Reuters.
The announcement adds to a growing list of challenges facing the manufacturing sector, with other industry players also warning of rising costs and operational disruptions linked to ongoing global trade tensions.
