The Novo Energy battery company announced on Monday that it intends to reduce employment by 50 percent. The purpose of employment restructuring is to reduce the costs of the company. The decision was made after the assessment of the company’s activities, which took into account bankruptcy of the Swedish company Northvolt, the original co -owner of the undertaking.
Currently, the only owner of Novo Energy is Volvo Cars, after which in February the company took over 50 percent. Northvolt shares for a symbolic amount.
Economic challenges and market conditions have plunged Novo Energy
Reuters quotes the statement of the general director Novo Energy Adrian Clarke, who said that despite the strenuous attempts to secure business, the company is not able to maintain operations at the current level.
“Despite our best efforts to secure our business and extensive searches for the right new technological partner, Current economic challenges and market conditions prevented us from maintaining our operations at the current level” – said in a statement the general director of Novo Energy Adrian Clarke.
Another wave of dismissals Novo Energy
Northvolt and Volvo Cars set up Novo Energy in 2021 to build a battery factory in Gothenburg on the west coast of Sweden.
The Joint Venture company began in January to reduce costs, including a 30 % exemption. staff.
As the Reuters spokesman said, the exemptions announced on Monday will lead to a reduction in 150 subsequent full -time jobs.
The main long -term goal
Reuters’ information shows that for Novo, the production of batteries in cooperation with a new technology partner in the Gothenburg region in Sweden remains the main long -term goal.
The spokesman for Volvo Cars told Reuters that the company shares the goal about Novo, but refused to provide further details.
Novo has announced that it will continue limited activities, at the same time finalizing the first phase of construction, and will examine future scenarios that could enable large -scale resumption.
