Novo Energy Layoffs: Volvo Cars’ Battery Making Company To Cut 50% of Its Workforce To Reduce Cost Amid Northvolt Bankruptcy
Stockholm, May 6: Novo Energy, Volvo Car’s battery-making company, announced it would cut 50% of its total workforce. The company said the decision of Novo Energy layoffs was as part of its cost-reduction programme, following a business evaluation to account for the bankruptcy of Sweden’s Northvolt, the venture’s original co-owner. Reports said that Volvo Car’s Novo Energy announced that it struggled to maintain its operations at the current scale.
In his statement, Reuters reported that Novo Energy CEO Adrian Clarke spoke about the company and its struggles. Adrian Clarke said that the company tried to secure its ongoing business and tried to find a new suitable technology partner. However, due to facing economic challenges and adverse market conditions, Novo Energy was unable to manage its operations at its scale. PwC Layoffs: UK-Based Fintech Consulting Firm Laying Off More 1,500 Employees, 2% of Workforce in US Amid Facing Global Challenges.
Novo Energy layoffs also impact more 150 jobs as a part of the company’s efforts to streamline the operations and manage the costs. The job cuts decision was taken by Novo after its technology partner Northvolt filed for bankruptcy following financial and operational challenges. Northvolt laid off several employees last year to manage its business and cut costs; however, it filed for bankruptcy in Sweden on March 12, 2025. The Northvolt bankruptcy was a result of company not able to get necessary finance to operate its business.
Novo Energy Layoffs; Partnership, Reason and History
Novo Energy battery venture was formed by Northvolt and Volvo Cars in 2021. The JV started taking cost-cutting measures in January when it dismissed 30% of Novo Energy staff. Novo said that its primary objective for the long term was to produce batteries with the new technology with Northvolt. After the layoffs, Novo Energy will reportedly continue with limited operations but find ways to resume full-scale activity. Tech Layoffs 2025: 51,028 Employees Laid Off by 112 Companies So Far This Year Due to Various Reasons, 23,486 Laid Off in April Alone.
Volvo Cars is reportedly aiming to acquire a 50% stake in Northvolt after it filed for bankruptcy in March 2025. Volvo Cars CEO Hakan Samuelsson already said in April that the factory construction was nearly complete and no battery equipment had been moved in.
(The above story first appeared on LatestLY on May 06, 2025 05:18 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).
