Volvo Cars said Friday it plans to cut 2,500 jobs after a sharp decline in its Chinese market weighed on third-quarter earnings.

 

The Swedish automaker reported an operating loss of 5.6 billion Swedish kronor ($563.7 million) in the third quarter, down from an operating profit of 6.4 billion Swedish kronor in the previous period.

 

The company, which is owned by China’s Geely Holding, cited a deteriorating environment led by “tougher” market conditions in China and the U.S., which “negatively affected free cash flow.”