Sweden’s cash-strapped electrical automotive battery maker Northvolt stated on Monday it might reduce 1 / 4 of its workers within the nation, because it struggles with strained funds and a slowdown in demand.
The lack of 1,600 jobs in Sweden comes as electrical automotive gross sales droop in Europe and the continent lags far behind China in battery manufacturing.
“While overall momentum for electrification remains strong, we need to make sure that we take the right actions at the right time in response to headwinds in the automotive market, and wider industrial climate,” Northvolt CEO Peter Carlsson stated in an announcement.
He added that Northvolt wanted to “focus all energy and investments into our core business.”
Northvolt, which warned on Sept. 9 that cuts had been coming, stated that following “initial steps” of a strategic overview it estimated that proposed cost-saving measures would lead to about 1,000 redundancies at its main Skelleftea plant – the place an enlargement venture can be suspended – one other 400 within the metropolis of Vasteras and 200 within the Swedish capital Stockholm.
“The rescoping of operations is critical to ensure a sustainable operation and cost base,” Northvolt stated.
It added that “to achieve this a workforce reduction of approximately 20% at a global level, and 25% in Sweden is required.”
The firm employs 6,500 folks, in accordance with its web site.
In mid-September, Swedish Prime Minister Ulf Kristersson stated the federal government had no plans to intervene to rescue Northvolt.
Since its creation, the Swedish firm has secured $15 billion of credit score and capital.
Northvolt has been seen as a cornerstone of European makes an attempt to meet up with China and the United States within the manufacturing of battery cells, an important element of lower-emission automobiles.
Europe accounts for simply 3% of worldwide battery cell manufacturing however has set its sights on 25% of the market by the tip of the last decade.
Source: www.dailysabah.com