Volvo Cars’ battery subsidiary Novo Energy has declared a downsizing and restructuring, resulting in half of its staff being laid off.
Following the bankruptcy of its tech partner, Northvolt, caused by financial and operational issues, this choice was made.
The aim of the workforce reduction is to streamline operations and control expenses, with all layoff notifications contingent upon continuing discussions with unions in Sweden.
Adrian Clarke, CEO of NOVO Energy, stated: “In spite of our diligent attempts to stabilize our company and our thorough continuous quest for a fitting new technological collaborator, present financial difficulties and prevailing market circumstances have rendered it unfeasible to sustain our operations at their current magnitude.”
Making this choice was extremely difficult, and it wasn’t taken lightly.
Launched in 2021 by Northvolt and Volvo Cars, Novo Energy plans to construct a specialized battery plant in Gothenburg, Sweden.
The firm will sustain reduced activities during the completion of the initial building stage and as they assess possible upcoming situations.
In January, the collaborative effort led to cost-reduction strategies such as cutting the workforce by 30%.
According to a statement from a Novo spokesperson, the latest round of layoffs will result in another 150 job cuts, as reported.
Reuters
.
A representative from VolvoCars verified their joint goal with Novo but declined to provide additional information.
Additionally, in January, Northvolt arrived on the scene.
choice to sell its stake
at Novo Energy, moving its shares to Volvo Cars.
At the same time, these firms are exploring possibilities for collaborative projects within the North American marketplace.
During financial restructuring, Northvolt, which is under U.S. bankruptcy protection, has stopped providing financial support to various joint ventures, such as Novo Energy, for the entirety of 2024 to concentrate on its core business of producing battery cells.
“Volvo Cars’ Novo Energy plans to reduce its workforce by 50% as part of restructuring efforts,” which was initially developed and released by
Just Auto
, a owned brand.
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