Northvolt Layoffs

Bankrupt Swedish battery maker Northvolt began notifying roughly 2,800 employees of their termination on March 31, 2025, cutting about 62% of its remaining Swedish workforce as it sought a buyer for its operations. The company had filed for Chapter 11 bankruptcy protection in the United States in November 2024 and in Sweden in March 2025, after falling behind on battery orders in mid-2024 and burning through its cash reserves. Despite raising $13 billion in debt and equity from backers including Goldman Sachs and Volkswagen, Northvolt could not close the cost gap with Chinese battery competitors. Bankruptcy trustee Mikael Kuba said retaining a reduced staff was "likely crucial for being able to sell the operations in whole or in part." The Skellefteå factory absorbed the largest share of cuts, losing 1,800 of roughly 3,000 workers, while international employees were not affected.

Reason: Bankruptcy and asset sale process

Source: sifted.eu

Swedish battery maker Northvolt announced on September 23, 2024 that it would cut 1,600 jobs, about 20% of its global workforce, as slowing electric vehicle demand and operational setbacks forced a major pullback. The reductions were concentrated at its primary Ett factory in northern Skelleftea (1,000 positions), its Vasteras plant (400 positions), and Stockholm (200 positions). The company also halted plans to expand the Ett facility to 30 gigawatt-hours of annual capacity. The EV demand slowdown hit Northvolt hard in a year when it had already lost a 2 billion euro BMW contract in June after failing to meet delivery commitments. CEO Peter Carlsson acknowledged the decisions were "challenging and painful" but said they were necessary. The company had raised $14 billion in total funding before the cuts.

Reason: EV demand slowdown, cost reduction, loss of BMW contract

Source: cnbc.com