Swedish company Volvo Cars said on Monday that it is closing its office in Stockholm, which currently employs 450 people, transferring its duties to its headquarters in Gothenburg as part of efforts to cut costs and improve efficiency, UNN writes, citing Reuters.
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The automaker, whose controlling stake is owned by China’s Geely, said last year that it planned to cut 3,000 jobs, mostly office positions, amid challenging conditions in the automotive market, characterized by declining demand and uncertainty in trade relations.
On Monday, Volvo Cars said that concentrating resources at a smaller number of Swedish facilities would help reduce complexity, accelerate cross-functional cooperation and improve competitiveness.
The Stockholm office, established to build expertise in areas such as software development, artificial intelligence and digital customer experience, will close on March 1, 2027.
It was not immediately clear how many jobs would be cut as a result of the relocation.
"Volvo Cars will manage the process in close dialogue with employees and their representatives," the company said in a statement.
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