Peter Carlsson met with the media for the first time in several months.
– It feels really shitty to downsize and lay people off when I’ve worked around the clock for eight years with these people, who are like a second family to me. At the same time, it’s necessary, and we have to ensure that the company and the factory here have long-term sustainability, says Northvolt's CEO, Peter Carlsson, to Norran.
Internal resources within the company have been mobilized to support affected employees. Working groups have been formed with external partners to provide assistance to those employed on work visas and their families.
– These working groups will focus on helping those impacted to find new jobs or other assistance they may need. We are also coordinating with the municipality, the region, and relevant national stakeholders, explains Carlsson.
Northvolt's HR manager, Daniela Maniaci, emphasized in a press release that the company is committed to conducting the layoff process "with compassion and care," ensuring that all affected employees receive the necessary guidance for their future endeavors.
In addition to the 1,000 employees in Skellefteå working in various departments, 400 employees at Northvolt Labs in Västerås and 200 at the headquarters in Stockholm are also impacted.
Northvolt will now concentrate solely on its core business of large-scale battery production. The company has also announced a slowdown in its expansion plans, reducing the planned increase in production capacity from 16 GWh to 30 GWh. This decision follows an earlier pause in the production of active material at Upstream 1.
– We want to start production at Upstream 1, but for now, we're pausing it. At the same time, we're talking to other companies who might want to work with us on this, says Carlsson.
He attributed the staff reduction to Northvolt's failure to achieve the anticipated volumes and results.
– To fulfill our obligations to our customers, we must reduce costs and scale back our operations,' stated Carlsson.
Watch the full TV interview (in Swedish) with Peter Carlsson on norran.se.
He emphasizes that even those who have invested in Northvolt want to see how quickly the company can become profitable and how they can reduce the necessary capital.
– This is also a reason why we are halting the expansion, says Carlsson.
He acknowledges that Northvolt is still at the beginning of a journey, developing products that are key to a long-term megatrend in electrification.
– Battery production is incredibly difficult and complex. Here, we’ve built one of the first major factories in Europe. We’ve brought in a lot of new staff and new equipment. It has taken more time to fine-tune this production than we anticipated. But we’re also seeing positive production numbers, which bodes well for the future, says Carlsson to Norran.
Recently, Northvolt introduced an extensive acceleration program aimed at increasing production levels. So far, this has been very successful, with production tripling, according to Northvolt.
– The recent production records at Northvolt Ett show that we are on the right track, but the decisions we make today, however tough they may be, are necessary for Northvolt’s future, says Carlsson.
Even though the company is now significantly scaling back its ambitions, their intention remains to continue building a European industrial base for battery production. This will be achieved by focusing on scaling up battery cell production.
Carlsson emphasizes that the decisions are both challenging and painful. However, he believes they are necessary to adapt to the current reality and enable Northvolt's long-term success. He stresses the importance of taking the right actions at the right time in response to headwinds in the automotive market and the broader industrial climate.
– We are determined to overcome the challenges we face and to emerge stronger and more focused as we move forward in our work to contribute to a more sustainable society. I, along with all my colleagues at Northvolt, will do everything we can to support the colleagues who will eventually leave the company, says Carlsson.