Volvo Cars to close Stockholm office and move operations to Gothenburg

Volvo Cars has announced it will close its Stockholm office on March 1, 2027, as part of a broader strategy to reduce costs and improve operational efficiency. The company plans to transfer responsibilities from the capital to its headquarters in Gothenburg.

The Stockholm location currently employs approximately 450 people and was established to develop critical expertise in software, artificial intelligence, and digital customer experience. While the company intends to centralize these functions in Gothenburg to reduce complexity and accelerate cross-functional collaboration, the exact number of job cuts resulting from this specific closure remains unclear.

This move is part of a larger 18 billion Swedish krona cost-saving and liquidity enhancement plan. Last year, Volvo Cars, which is majority-controlled by Geely, announced intentions to cut approximately 3,000 jobs globally, primarily in office-based roles, citing high costs, slowing electric vehicle demand, and global trade uncertainties.