On Monday, it was announced that the battery manufacturer is notifying 1,600 people of layoffs. In total, this is about a quarter of all employees in Sweden.
Peter Benson, who wrote a critical editorial about Northvolt in Affärsvärlden, believes that the best solution for the corporate giant is to throw in the towel before a new start.
– Even if there is a healthy business at the bottom that can be continued, it may be better with a bankruptcy to wash away all old debts and many problems, Benson tells SVT Nyheter.
The editor-in-chief stresses that Northvolt has created a bad reputation for itself after unsettled deals and promises that are never fulfilled. According to him, a new management is required to be able to move forward.
The expert: “Tricky times ahead”
Expert Antoine Vagneur-Jones, head of trade and supply chains in energy transitions at BloombergNEF, wants to see a proper shift in focus at the battery manufacturer.
– Right now we have seen various attempts to investigate other revenue systems such as the development of battery chemistry and all sorts of different projects. But going back to the basic task (producing batteries) and delivering to customers will be very important for a company at such an early stage, says Vagneur-Jones to SVT Nyheter.
Are they in a make it or break it situation?
– This is the toughest point in their history so far. And it’s in a market that’s already seeing a lot of consolidation, so yes, tricky times ahead, says the expert.
See more of Antoine Vagneur-Jones and Peter Benson in the clip above.