Novo Energy to cut workforce by 50% following Northvolt collapse
Novo Energy says that it will reduce its workforce by approximately 50% and implement a broader reorganisation of its operations in response to the bankruptcy of Northvolt, its former technology partner.
The measures follow what the company described as an “extensive evaluation” of its business. Novo Energy had previously initiated cost-reduction efforts in January. These additional actions reflect continued financial strain and uncertainty following the collapse of its key partner.
“Despite our best efforts to secure our business and an extensive ongoing search for a suitable new technology partner, the current economic challenges and market conditions have made it impossible to maintain our operations at the current scale,” said Adrian Clarke, Chief Executive Officer of Novo Energy, in a press release. “This was an incredibly hard decision to make, and it was not made lightly.”
The new redundancies are subject to union negotiations currently underway in Sweden. Novo Energy did not disclose the exact number of affected positions but confirmed the cuts will impact approximately half of its current workforce.
The company continues to state in the press release that it will continue limited operations during the completion of the first phase of its facility construction. At the same time, Novo Energy is actively pursuing alternatives that could enable a long-term resumption of full-scale production.
Novo Energy concludes by saying that "Producing batteries, with a new technology partner, in the Gothenburg area remains the primary long-term objective for Novo Energy."
