Northvolt AB, the Swedish company specialising in batteries for electric vehicles, has announced the elimination of more than 3,300 positions out of a total workforce of around 5,000. The move comes as part of the bankruptcy procedure launched in Sweden on 12 March, according to statements from court-appointed administrator Mikael…
Northvolt AB, the Swedish company specialising in batteries for electric vehicles, has announced the elimination of more than 3,300 positions out of a total workforce of around 5,000. The move comes as part of the bankruptcy procedure launched in Sweden on 12 March, according to statements from court-appointed administrator Mikael Kubu, reported by Swedish news agency TT.
Founded in 2016, the company had positioned itself as a central player in Europe’s industrial strategy to rival Asian and North American markets in battery cell production. Faced with high levels of debt, Northvolt was forced to file for bankruptcy in a Swedish court. The proceedings are currently being overseen by Mikael Kubu in his role as judicial administrator.
Staff reduction and continued operations
Of Northvolt’s 5,000 employees, only 1,700 will remain in post during the period of judicial administration. Mr Kubu indicated that this substantial reduction is essential to preserve the company’s assets and facilitate a potential full or partial acquisition by an investor. Redundancy notices will begin to be issued to staff from Tuesday.
The main production site in Skellefteå, northern Sweden, will retain 1,200 employees out of the original 3,000. This site, central to Northvolt’s industrial plans, had already seen its expansion paused in September, when 1,600 job cuts were first announced.
Parallel proceedings in the United States
In addition to the proceedings in Sweden, Northvolt secured legal protection in the United States in November by filing under Chapter 11 of the US Bankruptcy Code. This measure was intended to restructure the company’s debt and reorganise its operations in the North American market. No buyer has yet been identified, and discussions are ongoing according to the most recent updates.
Mr Kubu emphasised that maintaining partial operational activity will be key in talks with potential acquirers, adding that the company’s valuation will depend largely on its ability to continue production.
