As it reminded CNBCjust in March of this year, Northvolt announced that it employs as many as 6,000 people at its headquarters. The factory in Skellefteå, where lithium-ion batteries are made, was to be expanded. However, these plans have now been withdrawn and a wide-scale reduction in employment has been announced.
Northvolt to cut jobs as Swedish company faces cost cuts
In connection with the cost-cutting campaign, Northvolt will lay off 25 percent of its employees in Sweden and 20 percent of those working in the company's international branches. In the home country, this will be exactly 1,600 employees, of which 1,000 positions are at the main factory in Skellefteå, 400 at the plant in Västerås and 200 at the headquarters in Stockholm. The layoffs are to be carried out in response to the “difficult macroeconomic conditions” in which the company finds itself.
Importantly, the reduction in employment is to bypass the Polish branch of Northvolt in Gdańsk. At the beginning of September, the company she informedthat it is looking for potential partners and investors for the plant who will financially support further production.
The Swedish giant intends to support laid-off employees
“Today is one of the most difficult days in the history of our company as we face the harsh reality of reducing our workforce” – she commented September 23 Chief People Officer at Northvolt Daniela Maniaci.
Employees affected by redundancies are to receive support through assistance in finding new employment and addressing possible relocation issues. “In addition, Northvolt is establishing a task force with external partners to provide additional assistance to employees with work visas and their families,” the company added in a statement.