Northvolt Layoffs: Swedish EV Battery Maker Lays Off Around 1,600 Employees Amid Cost Cutting Measures
Northvolt has reportedly laid off 1,600 employees, or 20% of its workforce, due to cost-cutting measures. The company has paused expansion plans while focusing on increasing production at its main factory in Skelleftea.
New Delhi, September 25: Northvolt, the Swedish EV battery maker, has reportedly laid off around 1,600 employees. These layoffs can be seen as the company's cost-cutting measures amid a slowdown in the electric vehicle (EV) market. As per reports, the job cuts impact around 20 per cent of its total workforce and comes at a time when Northvol is reportedly facing market challenges.
As per a report of TechCrunch, the layoffs affected about 20 percent or 1,600 employees of Northvolt. As per multiple reports, these job cuts are seen as a response to a combination of slowing EV sales and rising costs associated with battery production. The company is reportedly facing challenges related to execution, which have likely contributed to the need for these financial adjustments. As per reports, Car manufacturers are reducing their production estimates for electric vehicles. Northvolt explained that the cost-cutting measures are due to lower than expected demand growth for electric vehicles. The Washington Post Layoffs: Newspaper and Media Company Lays Off 25% of Its Employees From Tech Arm, Arc XP Amid Strategy Shift for Refined Product Vision.
As part of these changes, Northvolt has reportedly decided to pause its plans to expand its factory operations. Specifically, the company had intended to enhance its facility in northern Sweden, known as the Ett factory, with the goal of increasing production capacity to 30 gigawatt-hours per year. The expansion was crucial for the production of cathode active material (CAM), which is an essential component in the manufacturing of complete battery cells. Qualcomm Layoffs: Chip Giant To Lay Off 226 Employees in US Later This Year as Part of Business Diversification Strategy, Starting in November.
In June, Northvolt was not able to deliver an order for BMW on schedule, which caused the German carmaker to cancel their two billion EUROS contract. Then, on September 9, Northvolt decided to shut down its factory in Sweden that was supposed to produce CAM. Northvolt will likely need to purchase CAM from other sources, probably from abroad. As per multiple reports, Northvolt has stated that it is limiting some of its other plans to concentrate on increasing production at its main factory in Skelleftea, located in northern Sweden.
(The above story first appeared on LatestLY on Sep 25, 2024 11:15 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).