“The decisions we’re taking today, however tough, are required for Northvolt’s future,” Northvolt CEO Peter Carlsson said in a press release.
The layoffs mark a blow to Europe’s industrial strategy as it looks to maintain its position as an automotive leader. The European Commission has raced to sign agreements with third-party countries to secure critical raw materials required for electric vehicle (EV) batteries.
Northvolt is the bloc’s premier battery manufacturer to supply European automakers, going up against Chinese giants CATL and BYD, along with longtime manufacturers Panasonic and Samsung.
But car brands are contending with slower EV sales, reducing Northvolt orders.
BMW previously canceled its €2 billion order for EV batteries, kickstarting the crisis at the battery company. Volkswagen, meanwhile, is Northvolt’s largest shareholder and struggling with its own financial woes.