Volvo Cars will be closing its flagship technology hub in the Sweden’s capital city as it cuts costs and pushes for greater competitiveness, the automaker announced in a Aug. 31 press release.
The move to shut its Stockholm offices on March 1, 2027, is part of the company’s plans to concentrate “competences and resources” in Sweden among fewer sites.
Volvo established the Stockholm tech hub in 2022 with space for 700 employees, and it has played a “significant role” in software development, artificial intelligence and digital customer experiences, the company said.
There are 450 Volvo Cars employees currently working at the Stockholm office, and the company says that it will relocate most of the responsibilities to its headquarters in Gothenburg.
Volvo had announced 3,000 job cuts in May last year in response to trading challenges sparked by U.S. tariffs.
“Volvo Cars will manage the process in close dialogue with employees and employee representatives,” Volvo stated in the release.
