Saturday, May 17, 2025

Shocking news: Bankruptcy costs 1,500 jobs at car factory

Just over half of all employees at Northvolt's bankrupt factory in Skellefteå will now be forced to leave their jobs, according to the trustee.

Following the bankruptcy of Northvolt in Skellefteå, half of the remaining 3,000 employees have been forced to leave the company.

This is what Dagens Industri writes.

The company Northvolt was declared bankrupt three weeks ago.

Curator Mikael Kubu and representatives from the former management will deliver the sad news to the employees on Monday this week at noon.

The intention is to maintain operations at the factory to enable a sale. In the meantime, the salaries of the employees are covered by the state wage guarantee fund in Sweden.

This means that around 1,500 out of the 3,000 employees at the factory in Skellefteå will have to leave their jobs.

Northvolt has long struggled with poor finances and battery packs that have not materialized. In fact, the factory never managed to deliver even a single battery for a passenger car.

Not even to its largest investor – namely the German Volkswagen. The brand from Wolfsburg also lost a double-digit billion when it became clear almost a month ago that Northvolt could not be saved. Read more about it here.

In fact, Northvolt has been on the verge of bankruptcy several times. Most recently in October 2024, when the company was just a few hours away from closing due to a massive tax debt.

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