Responding to weakening demand for heavy-duty trucks, Volvo Group is working to cut production at its Volvo and Mack truck plants and laying off workers at the plants and potentially in white-collar jobs as well.

Heavy-duty truck orders have been slowed by market uncertainty about freight rates and demand, possible regulatory changes, and the impact of tariffs. 

As a result, on April 17, the company informed employees they would see layoffs of:

• 250-350 people at Mack Trucks Lehigh Valley Operations in Macungie, Pennsylvania (see story below).

• 250-350 people at the Volvo Trucks New River Valley Operations in Dublin, Virginia.

• 50-100 people at the Volvo Group Powertrain Operations in Hagerstown, Maryland.

The company already laid off about 180 people at the New River Valley plant in February.

And on April 23, CEO Martin Lundstedt said during its first-quarter earnings call that an additional 200 or so jobs would be cut, according to published reports.

Volvo Group has cut its 2025 North American heavy-duty truck demand forecast to 275,000 trucks from 300,000 trucks previously. The market in the first quarter was down compared to the same quarter a year ago, with retail sales 13% lower, mainly driven by a weaker long-haul segment.

"Recent uncertainty surrounding trade tariffs and the EPA27 emissions legislation have caused U.S. customers to adopt a wait-and-see approach," the company said in its first quarter report. "There is no longer an expectation of a prebuy in 2025 due to EPA27."

Mack Laying Off Pennsylvania Plant Workers

On April 21, HDT reported that fresh on the heels of the launch of its new Class 8 Pioneer truck, Mack announced manufacturing layoffs.

Mack said it will lay off 250 to 350 workers at its Macungie, Pennsylvania manufacturing plant. The layoffs will take place over the next three months.

In a press release, Mack cited ongoing economic turmoil – particularly Trump administration tariffs and a looming trade war – as the reason for the layoffs.

New truck orders have dropped off significantly during the first 100 days of the second Trump administration. 

"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," Kimberly Pupillo, director of public relations for Mack said in a statement. 

“We regret having to take this action, but we need to align production with reduced demand for our vehicles."

According to published reports, it may not be just workers on the assembly line. All departments, including white-collar, office-worker positions, will be reviewed and could be impacted. 

Fuel for a Political Firestorm

Mack employees were notified of the layoffs on April 17.

Local 677 of the United Auto Workers represents 2,300 of the 2,700 employees at the Mack assembly plant in Lower Macungie. 

The union successfully bargained a five-year contract in November 2023 after a nearly six-week strike

"We have people still in the training center learning jobs and they found out they are getting laid off," said Timothy Hertzog, shop chairman for Local 677, representing Mack Trucks union employees, told ABC 6 Action news Philadelphia.

"It's not a good situation for us," Hertzog added. "With the tariffs, the price of the trucks had to increase twice this year already and customers are starting to pull some orders."

Trump Tariffs, or Mexico Move?

On April 18, Pennsylvania Gov. Josh Shapiro commented on the layoffs during a visit to the Bethlehem Fire Department.

According to Shapiro, the pending layoffs are, “another example of how (Trump’s) tariffs are negatively impacting Pennsylvania.”

However, Republican Congressman Ryan Mackenzie told ACB 6 Action News that the layoffs are Mack’s own doing. 

According to the congressman, the OEM relies heavily on government subsidies and was already in a tough financial position prior to news of tariffs on foreign goods.

"For many years we've actually seen their interest and desire to move jobs down to Mexico,” Mackenzie said. “Demand has already been falling ahead of these tariffs. I think they put themselves in a vulnerable position, which is ultimately affecting workers in our community.”

Democratic state Rep. Josh Siegel, who represents Pennsylvania's 22nd District, including Lehigh County, told CBS News the layoffs will be a "devastating blow to Lehigh Valley workers."

"Once again, American workers are being sacrificed at the altar of political theater,” Siegel said. “The tariffs — erratic, broad and poorly targeted — are crushing core U.S. industries like trucking and manufacturing," Siegel said in a statement. 

"Supply chains are snarled, costs are soaring, and confidence among employers is collapsing. Communities like the Lehigh Valley, built on generations of hard work and industrial pride, are now being asked to carry the burden of this administration's incompetence. 

"These are good-paying union jobs that our community cannot afford to lose. These 350 workers are not just numbers. They are parents, neighbors, veterans and skilled tradespeople who built America's backbone. And they deserve better."

Despite the layoffs, Mack said the Macungie plant will remain in operation and producing new trucks.

This story was originally published on April 21, 2025. On April 28, it was updated to include additional information about both Mack and Volvo layoffs and first-quarter financial results.