Volvo Cars to close Stockholm office in efficiency drive

Volvo Cars has announced plans to close its Stockholm office, home to 450 employees, as part of a cost-cutting and efficiency-enhancing drive. The decision comes as the carmaker, majority owned by Chinese firm Geely, prepares to eliminate around 3,000 positions, mostly white-collar jobs, in response to a struggling automotive market.

The move aims to streamline operations by consolidating resources across fewer Swedish sites, thereby simplifying processes, improving collaboration, and boosting competitiveness. The Stockholm office, which began operations to develop expertise in software development, artificial intelligence, and digital customer experience, will cease activity from March 1, 2027.

Volvo Cars assured that the restructuring process will be handled with sensitivity, maintaining open communication with employees and employee representatives. The exact number of job cuts resulting from this decision has not been disclosed.