Northvolt is laying off 1,600 employees in Sweden but is maintaining its commitment in Quebec.
The Swedish battery manufacturer, Northvolt, has announced the dismissal of 1,600 employees in Sweden, which represents one-fifth of its workforce, due to financial difficulties. This measure is part of a strategy to “focus all energy and investments on (its) core business.” On Monday, the company specified that 1,000 jobs will be cut in Skellefteå, 400 in Västerås, and 200 in Stockholm. The layoffs will be subject to negotiations with the relevant unions.
An adjustment to market headwinds
Northvolt’s CEO, Peter Carlsson, stated in a press release that “despite the strong global momentum towards electrification,” the company must ensure to take “the right actions at the right time” to address challenges in the automotive market and the general industrial climate. As part of this restructuring, Northvolt will suspend the expansion project of its Northvolt Ett plant in Skellefteå and slow down programs and expansion of its laboratories in Västerås.
Stockholm and reduction of administrative needs
This reduction of activities in Sweden will lead to a decrease in administrative needs, which explains the job cuts at the Stockholm headquarters.
Projects abandonment but commitment to Quebec
Two weeks ago, Northvolt announced the abandonment of its cathode production project in Borlänge, as well as the temporary halt of cathode activities in its main plant in Skellefteå. However, the company remains committed to the construction of three other major projects, including a cell factory in the Montreal area. The revised timeline for these projects will be unveiled later this fall.
Debates on energy allocation in Quebec
Northvolt’s financial difficulties sparked debates in the Quebec National Assembly last week regarding the energy blocks reserved for the future factory to be built in Saint-Basile-le-Grand and McMasterville, in Montérégie.
With information from CTV News
The text Northvolt licencie 1 600 employés en Suède mais maintient son engagement au Québec comes from L’annuel de l’automobile – Actualité automobile
