Stockholm, September 23: Northvolt plans to cut around 20% of its global workforce amid the financial crisis and focusing on its core business. The Swedish electric vehicle battery maker was rumoured to reduce an unspecified number of workers and cut costs at a gigafactory in Skelleftea this month. A report confirmed that Northvolt layoffs would affect around 1,600 employees from three cities in Sweden as it struggles to stand up to its mission to produce a home-grown supply of EV batteries. 

City News Montreal reported that Northvolt would announce the job cuts as a part of its strategic review, which it conducted this month. The Swedish EV battery maker also would suspend its plans for the expansion of its flagship plant and focus on boosting battery cell production to meet the automotive customers' demand. The Northvolt layoffs will affect 1,600 individuals, including 1,000 at its Northvolt Ett factory in Skelleftea, 400 in Vasteras and 200 in Stockholm. General Motors Layoffs: US-Based Automobile Company GM Announces 2nd Round of Layoffs, Likely To Affect Around 1,700 Employees at Fairfax Assembly Plant in Kansas To Streamline Operations.

Northvolt President and CEO Peter Carlsson reportedly said that despite the stronger momentum of electrification, the company would need to take the right steps at the right time according to the automotive market and broader industrial climate. He acknowledged that the decision of Northvolt layoffs was difficult and also painful; however, it was necessary to adapt to the current realities and for the long-term growth of the business.

The CEO said the company would overcome the upcoming challenges and continue contributing to a more sustainable society. The battery maker would put the expansion at its flagship Northvolt Ett plant in Skelleftea on hold and slow down programs and expansion at laboratories in Vasteras. The report said that Northvolt layoffs in Sweden would result in fewer requirements for administrative jobs, which explained reduction of headcounts in Stockholm. Volkswagen Layoffs: German Car Manufacturer VW Prepares To Lay Off Its Employees in China To Lower Costs Amid Sales Decline, EV Shift.

About two weeks earlier, the company abandoned its Borlange manufacturing project and put the activities related to the cathode on hold at Skelleftea. Daniela Maniaci, Chief People Officer at Northvolt, said the company had been going through one of the most challenging periods. The City News Montreal added that the company had around USD 7 billion worth of projects in Quebec, Canada, and Ottawa had committed USD 2.4 billion in investment. However, the report said there was no information on whether the layoffs would also affect the Northovolt Quebec plant.

(The above story first appeared on LatestLY on Sep 23, 2024 08:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).