The slimming regime continues at Northvolt, amid financial turmoil: the company is eliminating 1,600 jobs – almost a quarter of its global workforce – in addition to putting the brakes on the expansion of its flagship project in northern Sweden.
“We are now experiencing one of the most challenging moments in our company’s history as we face the difficult reality of reducing our workforce,” Northvolt’s Chief People Officer Daniele Maniaci said in a statement.
The multinational did not provide details about its Quebec project.
It’s another difficult episode for the battery cell maker, which just refocused its strategy on a single market segment earlier this month in addition to pulling the plug on another major project in Sweden.
Specifically, some 1,000 Swedish Northvolt employees will lose their livelihoods in Skelleftea, where the company’s mega-factory is located. In addition, 600 jobs will be eliminated elsewhere in the country.
The announcement also means that the expansion of the complex in northern Sweden is on hold. Northvolt was to add 30 gigawatt hours of battery cell power, which should be able to power some 500,000 vehicles per year.
Given the deteriorating financial situation, Northvolt’s creditors last week retained the services of a New York investment bank, PJT Partners, to study various recovery scenarios.
Added to this are the anticipated delays to the $7 billion Quebec mega-factory planned by Northvolt in Montérégie – information revealed by The Press on August 31. The Legault government expects a delay of up to 18 months.