Novo Energy restructures – reduces workforce by 30%
Novo Energy, the joint venture between Volvo Cars and Northvolt, has announced plans to cut costs and will reduce its workforce by 30%.
The company explained in a statement that it is implementing “organisational changes and cost reductions in response to evolving market conditions and an amended business plan.” According to Swedish broadcaster SR, the restructuring will affect approximately 120 employees.
All redundancy notices are subject to ongoing union negotiations in Sweden.
"We are making this difficult but necessary decision to adjust our organisation due to the evolving market conditions, and it was not made lightly, says Adrian Clarke, CEO of Novo Energy, in a press release. “We understand the significant impact it will have on our valued employees and will provide them with assistance and support during these changes.”
The restructuring comes after Volvo Cars announced plans last October to take full ownership of the Novo Energy joint venture. This decision followed Northvolt AB’s inability to execute its financial commitments, a breach of the shareholders' agreement.
