Skellefteå hit hard as Northvolt plans to lay off 1,600 employees

Northvolt has announced drastic job cuts at the battery factory in Skellefteå, and elsewhere in Sweden.

Northvolt Ett from the air. The picture was taken in early September 2024.

Northvolt Ett from the air. The picture was taken in early September 2024.

Foto: Adam Savonen

Engelska2024-09-23 12:43

In a press release issued by Northvolt shortly after 1PM on Monday, the company announced that it has conducted a strategic review and decided to lay off 1,600 employees across the entire organization. Of those positions, 1,000 are located in Skellefteå.

They stated that they will focus their resources on "accelerating production in large-scale cell manufacturing at Northvolt Ett."

"These measures are expected to result in approximately 1,600 Northvolt employees being laid off, distributed across Skellefteå (1,000 positions), Västerås (400 positions), and Stockholm (200 positions).

"All lay-offs are subject to ongoing union negotiations," Northvolt wrote in the press release.

Other details of the announcement include:

Work suspended on expansion projects in Skellefteå (DS3 4 and FA2)

–⁠focus purely on DS1 and 2 and path to manufacturing 100,000 cells per week

– ⁠Northvolt Ett will have a workforce reduction

– ⁠Northvolt labs will be downsized

– ⁠Corporate functions will be downsized.

MUNICIPALITY REACTION:

Skellefteå mayor, Lorents Burman, in a press conference, described the layoffs as significant, impacting numerous individuals.

– We will work diligently, in collaboration with other stakeholders, to create opportunities that leverage this expertise within the municipality and the region, he stated.

Burman continued:

– Northvolt operates in a rapidly expanding market, particularly in Skellefteå. The demand for labor and skills is unprecedented in our region.

The municipality will immediately initiate efforts in response to today's announcement.

– Our aim is to minimize the negative impact on individuals affected by the layoffs, said Burman.

WORKER REACTION:

Aleksandar Kos has already been laid off from Northvolt in Skellefteå and will complete his final shift today at 3pm. Tomorrow, he will depart the city to return home to his family in Serbia.

– I've worked at Northvolt for six months, Kos said.

– As an employee of a consulting company working in Upstream, my lay-off was expected. I'm not particularly surprised or saddened by the news.

Kos, who declined to be photographed, stated that he would continue searching for jobs in Sweden but is unlikely to return to Northvolt.

HR REACTION: 13:45

Northvolt plans to collaborate with its partners to mitigate the impact of workforce reductions, particularly at Northvolt Ett and IN Skellefteå.

Internal resources have been mobilized to support affected employees, and a task force has been established with external partners to assist international employees and their families.

"Today marks one of the most challenging periods in our company's history as we navigate the difficult decision to reduce our workforce," said Northvolt's HR manager, Daniela Maniaci, in a press release. "Our top priority is to provide maximum support to all employees, especially those affected by layoffs."

She continued, "By offering support to departing employees, we are committed to a compassionate and caring process, ensuring that everyone receives the necessary guidance for their future endeavors."

UNION REACTION: 

"Numerous members of the Akademikerföreningen at Northvolt are facing job insecurity," stated Sveriges Ingenjörer in a press release.

"We, along with other concerned unions, have been engaged in difficult negotiations with the company. It has been a challenging process. Our immediate focus will be on informing and supporting our members,'" said Teodor Mellström, chair of the Akademikerföreningen at Northvolt and a member of Sveriges Ingenjörer.

Given Northvolt's collective agreement, members who lose their jobs can expect support measures such as unemployment benefits, income insurance, and assistance from the Trygghetsrådet. These tailored measures aim to facilitate a smooth transition to new employment.

"Losing a job is a difficult experience, and many members will face significant challenges ahead. Our priority is to provide unwavering support to our members and assist them in securing new employment opportunities as quickly as possible," said Camilla Frankelius, chief negotiator at Sveriges Ingenjörer.

Johan Kreicbergs, head of social policy at Sveriges Ingenjörer, commented in the press release, "For the affected members, this is undoubtedly a devastating blow. However, it's important to note that numerous employers across Sweden are actively seeking engineers. The rapid pace of technological development and the ongoing green transition continue to drive strong demand for engineers."

CONSULTANT REACTION: 

A consultant exiting the gates was unaware of Northvolt's announcement. Upon hearing about the extensive layoffs, he expressed shock.

– Now I have to figure out if this will impact me personally, he said.

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Peter Carlsson has agreed to an interview with Norran after the meeting.