Volvo Cars to close Stockholm software office by 2027

Volvo Cars has announced it will close its Stockholm office on March 1, 2027, as part of an ongoing restructuring effort to reduce costs. The facility, which was established to centralize expertise in software development, artificial intelligence, and digital services, will see its operations moved to the company’s headquarters in Gothenburg.

The decision follows a period of declining sales and profitability. Between June and August 2026, Volvo reported a 7.4 percent year-on-year decrease in global vehicle sales, totaling 148,239 units. While sales of electrified models, including fully electric and plug-in hybrids, grew by 13 percent, this increase was insufficient to offset the decline in other segments.

The company, which is majority-controlled by the Chinese group Geely, is currently navigating high development costs for electric vehicles and new technical platforms alongside market challenges such as price wars in China and import tariff uncertainties. This closure follows a broader trend of job reductions at the automaker, which announced the elimination of approximately 3,000 positions in 2025.