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Northvolt Factory Layoffs Top 1,200 After Union Negotiations End

The Northvolt Ett AB plant in Skelleftea, Sweden, on Thursday, Feb. 17, 2022. Sweden's Northvolt is leading an effort to forge a regional champion that can beat rivals from Asia. (Mikael Sjoberg/Bloomberg)

(Bloomberg) -- The number of layoffs at troubled Swedish battery maker Northvolt AB is now at around 1,200 following an announcement from the IF Metall union that more than 800 of its members will be let go from the firm’s key manufacturing site.

The redundancies are part of a previously announced measure to cut roughly 1,000 jobs at the Northvolt Ett plant in northern Sweden. Last week, the two unions representing the factory’s white-collar workers announced that about 400 of its members would be let go. 

The layoffs among IF Metall members may end up reaching 850, according to Lena Lundgren, a representative for the union’s regional chapter in Skellefteå, Sweden, where Northvolt’s battery plant is located.

Northvolt is currently racing to ensure its survival by stabilizing its short-term cash flow. Bloomberg previously reported that the company is nearing a $300 million financing deal which would buy it more time to secure long-term financing.

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