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Volvo Group is planning hundreds of layoffs across its operations in Pennsylvania and Maryland in response to cooling market conditions and uncertainty fueled by tariffs implemented by the Trump administration, company representatives told Trucking Dive.
Layoffs at Mack Trucks’ Lehigh Valley Operations facility in Macungie, Pennsylvania, are also due to market uncertainty surrounding freight rates and demand, a Mack Trucks spokesperson said in an email.
“Yesterday, we informed our employees that this unfortunately means we’ll have to lay off 250-350 people at LVO over the next 90 days,” the spokesperson said Friday. “We regret having to take this action, but we need to align production with reduced demand for our vehicles.”
Mack Trucks is reviewing its current staffing across all departments and will make necessary adjustments based on production needs.
“All departments including white collar / office worker will be reviewed and may be impacted. We will provide affected employees with information about the resources available to them at the state and federal levels,” the spokesperson said.
Volvo Group, parent of Mack Trucks, will also lay off between 50 and 100 workers at its Hagerstown, Maryland, facility, a Volvo Group spokesperson said. The job cuts at the powertrain production operations, which employs about 1,800 people, will occur between now and May 2, a spokesperson for Volvo Group said.
Mack Trucks’ Pennsylvania facility spans 1.7 million square feet and has been a central part of the company’s production network since 1975, according to its website. The center assembles Class 8 Mack trucks for North American and export markets.
Volvo Group’s 1.5 million square-foot Maryland facility develops and manufactures heavy-duty diesel engines, transmissions, and axles for Mack Trucks, Volvo Trucks, Prevost coaches, and Volvo Buses, according to its website.
The industry has been undergoing a series of challenges, including a prolonged freight recession, back-and-forth trade policy under the Trump administration and lower freight demand. Some shippers have paused exports from China as they strategize by running various scenarios to determine how Trump’s tariffs and trade policies will impact their bottom lines.
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