Swedish electric car battery manufacturer Northvolt is facing a severe financial crisis, resulting in employee layoffs.
The company announced the layoffs in a press release, citing a sudden cash shortage, largely due to BMW canceling a contract worth 2 billion US dollars for battery deliveries.
The exact number of layoffs has not yet been made public.
Northvolt previously stated that it employs around 3,000 workers at its Northvolt Ett Upstream 1 factory in Skellefteå, which will be partially shut down as part of the company’s restructuring efforts.
Northvolt management is currently in discussions with employee unions, promising to do everything possible to minimize layoffs, though acknowledging that some job cuts are unavoidable.
In addition to layoffs, Northvolt is considering selling its factory in Gdansk, Poland, and seeking partners for projects in Canada and Germany.
Plans for a new factory in Borlänge, Sweden, have also been scrapped.
CEO Peter Carlsson confirmed the company will be taking "tough measures" to stabilize its financial situation.
"We must take some tough measures to secure the basis for Northvolt's business, improve our financial stability, and strengthen our operational performance," Carlsson stated.
