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Legacy carmakers continue to report slumping sales in China. Volvo is the latest.

Volvo Cars shares plunged on Friday after the Swedish automaker reported a third-quarter net loss of approximately $573 million and announced plans to eliminate 2,500 jobs as it steps up efforts to contain costs. The stock fell more than 26%, hitting record lows after the results revealed the extent of pressure on the company's business.

Shares were down 26% after the automaker said it would cut another 2,500 jobs—around 6% of its workforce—amid worsening market conditions.

Volvo plunged by about 30% to a record low after the Swedish automaker's chief executive officer said the market for Western-developed cars in China is disappearing fast, prompting it to cut 2,500 more jobs. Luxury powerhouses including Hermès and Cartier are suffering steeper slumps in China, in a sign that a spending pullback by the country's wealthy consumers is hitting even the most resilient brands.

Volvo Cars CEO, Håkan Samuelsson, discusses the company's lower-than-expected Q3 results, weakness in China and job cuts, as shares hit their lowest ever levels.