Volvo Cars to Close Stockholm Office with Around 450 Employees

August 31, IT Home News: According to Reuters, Swedish automaker Volvo Cars announced on Monday that it will close its Stockholm office and integrate related business functions into its Gothenburg headquarters.

IT Home learned that the office currently has about 450 employees. This move aims to cut costs and improve operational efficiency.

> ### Extended Reading > > The closure of the Stockholm office is part of Volvo Cars' series of measures to reduce costs and increase efficiency. In April 2025, Volvo Cars announced the launch of an accelerated cost reduction and cash flow optimization plan totaling 18 billion SEK, covering variable cost optimization, indirect expenditure efficiency, and specific cash flow optimization schemes. In May of the same year, Volvo Cars announced global layoffs of about 3,000 people, including about 1,200 local Swedish employees and about 1,000 external consultant positions, and expected to bear one-time restructuring costs of up to 1.5 billion SEK. From a financial perspective, Volvo Cars achieved revenue of 77.7 billion SEK in the second quarter of 2026, a year-on-year decrease of 17%; operating profit was 800 million SEK, compared with a loss of 10 billion SEK in the same period last year; global sales were 171,500 units, a year-on-year decrease of 6%. In the first half of 2026, overall revenue was 150.3 billion SEK, a year-on-year decrease of 15%. However, the cost reduction plan has achieved phased results, with the company completing its full-year indirect cost savings target of 5 billion SEK half a year ahead of schedule. In terms of electrification, in the first half of 2026, Volvo's pure electric vehicle sales were 79,500 units, a year-on-year increase of 13%, and the share of pure electric models rose to 24%. Volvo Cars is headquartered in Gothenburg, Sweden, where its product development, marketing, and administrative functions are mainly concentrated. The integration of the Stockholm office's functions into Gothenburg is intended to further concentrate resources and improve operational efficiency. As of December 2024, Volvo Cars had approximately 42,600 full-time employees globally, with the 450 employees at the Stockholm office accounting for about 1% of the total workforce. In terms of equity structure, Geely Sweden Holdings currently holds about 78.65% of Volvo Cars' shares. In 2010, Geely Holding Group acquired Volvo Cars from Ford for about 2.7 billion US dollars. Since then, Volvo Cars stopped losing money in 2014 and achieved stable profitability for several consecutive years.