Volvo Cars to Close Stockholm Office by March 2027

Volvo Cars will close its Stockholm office on March 1, 2027, as part of a broader efficiency drive to reduce costs and complexity. The company will relocate the responsibilities of 450 employees based at the site to its headquarters in Gothenburg.

The Stockholm office was originally established to develop expertise in software development, artificial intelligence, and digital customer experience. The company stated that concentrating resources across fewer Swedish sites will improve competitiveness and speed up cross-functional collaboration.

This closure follows a previous announcement by the carmaker, which is majority-owned by Geely, to cut 3,000 primarily white-collar positions. Those cuts were attributed to weakening demand in the automotive market and trade uncertainty. Volvo Cars noted it will manage the process in close dialogue with employees and employee representatives.