The company revealed plans on Monday to cut 1,600 jobs from its workforce. The layoffs are part of a strategic review announced earlier this month, Bloomberg reported.
The layoffs will be divided between three plants. In the factory Skelleftea, 1000 positions are scheduled for liquidation. At the plant in Vasteras to lose 400 employeesand the plant in Stockholm will reduce employment by 200 people. All layoffs are subject to ongoing union negotiations, the company said.
Trouble comes unexpectedly
The financial crisis that the company has fallen into due to the drop in demand for electric vehicles has come at a time when the company is negotiating a new financial agreement with lending banks and investors, Bloomberg notes.
The company has been seeking to create a domestic supply chain for electric vehicle batteries in Europe. In January, it secured a $5 billion green loan, bringing its total debt and equity investment to more than $13 billion.
What about the plant in Poland?
Business optimization also applies a new energy storage factory in Gdańsk, the largest plant of this type in Europe.However, in the company’s statement on Monday there was nothing about possible layoffs at the Gdańsk plant.
In early September, Northvolt announced that it was looking for potential partners and investors for the plant in Poland who could financially support the production of battery systems and energy storage facilities in Northvolt Systems. Battery manufacturer Northvolt did not rule out a partial or complete sale of the division.
