Northvolt, the Swedish battery manufacturer, has announced that only approximately 1,700 of its 4,500 employees in Sweden will remain employed following the company’s recent bankruptcy declaration. Bankruptcy trustee Mikael Kubu disclosed the information during a meeting with employees and in a subsequent press release.
Kubu stated that the remaining workforce will continue operations under the bankruptcy framework, while the majority of employees will be released from their duties. Specifically, about 1,700 employees from the affected companies will stay on, along with additional personnel from Northvolt’s international subsidiaries. Notifications regarding the workforce reductions are expected to begin the following day.
Since the bankruptcy announcement on March 12, many employees have experienced uncertainty regarding their employment status. In his press release, Kubu emphasized that the ongoing operations are supported by a principal agreement with relevant parties concerning financial guarantees essential for maintaining business activities. He highlighted that despite significant reductions, the ability to continue operations is crucial for the potential sale of the company’s assets, either wholly or partially.
At Northvolt’s Skellefteå factory, nearly 3,000 employees are currently employed, though the exact number of layoffs at this location has not yet been determined. Matti Kataja, Northvolt’s communications manager, indicated that further details on workforce reductions at Skellefteå would be provided in due course.
Kristina Lagerström, an economic reporter for SVT, interpreted the trustee’s decision to retain a portion of the workforce as an indication of continued optimism for a possible sale of the company. She noted that the trustee could have opted for complete layoffs but chose to preserve some operations, suggesting hope for future negotiations.
Oliver Szabo, the chief safety representative at IF Metall in Västerås, expressed that the specific number of affected employees was not yet known. He confirmed that reductions are expected and acknowledged the resulting anxiety among staff, who are currently awaiting further information regarding their employment status.
The bankruptcy proceedings for Northvolt are ongoing, with efforts focused on stabilizing operations and exploring potential avenues for the company’s future.
Source: SVT Nyheter
