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Volvo Lays Off Another 350 Employees at New River Valley

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AB Volvo (publ) (VLVLY - Free Report) shares have rallied 7.5% since the beginning of the year, but has continued to retrench employees to weather the storm that the Trump tariff measures have dragged the automotive industry into. On Saturday, a Volvo Trucks North America spokesperson stated that up to 350 employees at the company’s New River Valley, Dublin, VA, plant had been notified that their services would be terminated on June 27.

This brings the number of employees retrenched by the Sweden-based company to around 980 since the commencement of 2025. It employs a total of 7,900 total workers at the New River Valley, Lehigh Valley and Hagerstown plants. In recent days, Volvo has also announced layoffs at its Mack Trucks Lehigh Valley Operations in Macungie, PA, and Volvo Group Powertrain Operations plant in Hagerstown, MD.

Volvo, a Zacks Rank #3 (Hold) company that currently has a VGM Score of B, is part of the Zacks Automotive – Original Equipment industry. Over the past two years, VLVLY has advanced 24.1% against a decline of 14% in Zacks peer group and a rise of 1.8% in the industry. Peers like Bayerische Motoren Werke AG (BMWKY - Free Report) has lost 21.8% and Lear Corporation (LEA - Free Report) declined 41.3% in the same period. Both BMW and Lear currently carry a Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Janie Coley, the Volvo spokesperson said to The Patriot News, “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. In the case of New River Valley, this is unfortunately a second wave of layoffs. You might recall that we announced a layoff of 250-350 in February; this ended up being about 180 people, due to attrition. So we currently expect that the total impact at New River Valley will unfortunately be about 430 to 530 people.”

This is not the first time that the plant is witnessing mass layoffs. In 2019, approximately 3,000 Volvo employees were temporarily laid off in the Dublin plant after workers in Maryland went on strike. Later in the year, Volvo announced it would lay off 700 employees due to decreased demand. How the company gets impacted in the current volatile market remains to be seen.

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