The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture Of Computer, Electrical Electronic And Optical Products Manufacture Of Electrical Equipment 27.2 - Manufacture Of Batteries And Accumulators
1,050 jobs Number of planned job losses
Announcement Date
9 September 2024
Employment effect (start)
9 September 2024
Foreseen end date
Description
The Swedish battery manufacturer Northvolt plans to reduce its scale of operations in Sweden at two locations. The cathode active material production facility at the factory Northvolt Ett in Skellefteå will be put on hold indefinitely and the Northvolt Fem programme in Borlänge, aimed at creating a new facility for cathode active material production, will be terminated. The cost-cutting measures will result in redundancies, but the extent of the job cuts is not yet determined. However, the part of the Skellefteå factory that will cease its operations employs around 300 people, which represents around 10% of the total workforce in Skellefteå. In Borlänge, Northvolt was expected to create 1,000 jobs through its Northvolt Fem programme but today, the company has 10 employees at the location.
The company announces that it is doing its utmost to avoid lay-offs, but that the restructuring is part of a strategic review that focuses on streamlining the operations and reducing cost. Northvolt attributes the decision to a challenging macroeconomic environment and a need improve financial stability and operational performance. The company states that it is in negotiation with trade unions.
The restructuring takes place after large media attention on the company during the past year. There have been three unexplained deaths among employees at the Skellefteå factory. There have also been multiple accidents at the factory. In August, four employees needed hospital care after being subjected to toxic gases.
Northvolt is a Swedish design and manufacturing company specialising in lithium-ion battery technology for electric vehicles. The company employs approximately 3,500 people in Sweden.
Nothvolt has now announced large-scale restructuring, planning dismissals of 1,600 employees, out of which 1,000 are planned in Skellefteå, 400 in Västerås and 200 at the company headquarters in Stockholm.
Update 07/10/2024:
Nothvolt’s negotiations on redundancies of white-collar workers are partly complete. According to the trade union Unionen, 129 salaried employees will be laid off in Västerås, 81 in Stockholm. Negotiations on how many people will leave Skellefteå are not yet complete.
Update 25/10/2024:
Northvolt and IF Metall have now concluded the cooperation negotiations regarding the production in Skellefteå resulting in the dismissal of 840 employees.
Eurofound (2024), Northvolt, Internal restructuring in Sweden, factsheet number 201595, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/201595.
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