At Northvolt's factory in Skellefteå alone, 1,000 of the 1,600 positions that are now to be cut are to be found.
Northvolt, which is trying to make a living by building batteries for electric cars, has made another tough decision.
The supply of new capital to the ailing company has proven to be more than difficult. At the same time, costs are skyrocketing, and production at the factory in Skellefteå is lagging.
As a consequence, Northvolt has announced a comprehensive savings plan, which entails the dismissal of 1,600 employees in Sweden.
The company will lay off employees in Skellefteå, Västerås and Stockholm, where 1,000, 400 and 200 positions will be cut respectively. Furthermore, the expansion of the factory in Skellefteå is put on hold.
According to Northvolt, the purpose of the savings is to concentrate efforts on the production of battery cells in Skellefteå.
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The company emphasizes that it has succeeded in tripling production at this plant. Something that has also been a significant concern in the past.
– Although the overall momentum for electrification remains strong, we must ensure that we make the right decisions at the right times in response to the headwinds the automotive industry is facing.
– We must now focus all energy and investments on our core business. Success in increasing production at Northvolt Ett is decisive for delivering to our customers and enabling sustainable business.
The latest production records at Northvolt Ett show that we are on the right track, but the decisions we make today, no matter how hard they are, are necessary for Northvolt's future, says Peter Carlsson, CEO of Northvolt, in a press release .
Sparunde consequences are grim. Northvolt is now about to lay off one in four employees in Sweden.
The crisis in the company comes i.a. after deaths at the factory in Skellefteå and that a contract with BMW worth several billion kroner was torn up. Read more about it here .
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