Economic analysts' warnings over the past year are beginning to manifest, as more companies express skepticism about future prospects.
Lay Off 20% of Its Workforce
Notably, Northvolt, Europe’s largest battery manufacturer, is set to lay off 20% of its workforce, a move that underscores growing concerns within the industry.
On September 23, the company announced it would cut approximately 1,600 jobs, with the primary facility in Skellefteå—located about 124 miles (200 kilometers) from the Arctic Circle — losing 1,000 positions.
In addition to the Skellefteå plant, 400 jobs will be eliminated at the research center in Västerås, central Sweden, while 200 positions will be cut at the company’s headquarters in Stockholm, according to Ziare.
Peter Carlsson, CEO of Northvolt, expressed the emotional toll of these layoffs, stating, “For someone who has worked hard in recent years, a day like this is incredibly painful. Personally, it is not one of those glorious days, but we must do this to reduce costs.”
Intense Competition
The layoffs come as Northvolt faces intense competition from Asian rivals such as CATL, BYD, LG, and Samsung.
Despite raising an impressive $15 billion since its inception — more than any other European startup — the company is now grappling with declining electric vehicle sales across Europe. To support its expansion plans, Northvolt is seeking additional capital, prompting the recent announcement of job cuts.
While Northvolt has received support from the Swedish government, recent financial struggles have made it increasingly challenging to attract private investors. If the company’s financial situation worsens, further assistance from the state may become uncertain.
Currently, Northvolt employs 7,100 people globally, with 6,400 based in Sweden.
