"Miss Mogadishu? The repatriation grant helps you get home," read the ads from the far-right party, referring to the government's 350,000 kronor grant for refugees wishing to return to their home countries.
Around 20 bus drivers reportedly called in sick to protest, reports regional public radio broadcaster P4 Skaraborg.
Several of the drivers have a Somali background, according to the radio station.
Mette Ramquist, head of press at public transport operator Västtrafik, told Göteborgs-Posten that the company made an error in judgment when approving the advertisement.
"We did not anticipate the risk to the working environment that subsequently arose. As soon as we were made aware of this, we acted immediately and decided to take down the ads. Naturally, our drivers must be able to feel safe at work," Ramquist wrote in a statement to the newspaper.