Subcontractors raise the alarm: Not getting paid • “Must be careful with our money”
Crisis-hit Northvolt lays off 1,600 people.
Now the company’s CEO comments on today’s announcement.
– This will be really hard for us, to reduce the business this much. It’s really hard when you’ve built up the company for a long time, to have to say that 1600 can leave, says CEO Peter Carlsson to TV4 Nyheterna.
After a specially called meeting, it became clear that 1,600 employees are forced to leave Northvolt. The battery company has been in financial crisis for a period and in mid-September a total stoppage of expenses was introduced.
Now Peter Carlsson, CEO, comments on the layoffs. 25 percent of Sweden’s employees, which corresponds to 20 percent of the company’s strength, are laid off as part of the cost savings.
– This will be really hard for us, to reduce the business this much. It’s really hard when you’ve built up the company for a long time, to have to say that 1,600 can leave.
Subcontractors’ alarm: Not getting paid
Several subcontractors are unsure whether they will get paid by Northvolt, according to information given to TV4 Nyheterna.
– It is of course an ambition to pay all our bills, while during this time, when we come up with the financing solution, it will be tighter, says Peter Carlsson.
– Our ambition is to keep our commitments to all our subcontractors.
“Must be careful with our money”
He believes that the company must hold back financially, even if the coffers are not completely empty.
– It’s not empty, but we have to be careful with our money.
Now Northvolt is hoping for financial help from investors, lenders and customers.
– We are holding dialogues with Sweden, Germany, Canada about how everyone could be part of a total financing solution.
It is mainly in Skellefteå that the employees are affected. 1000 of the services relate to Skellefteå and there the development of the Northvolt Ett project is stopped.
400 of the services relate to Västerås and 200 to Stockholm. The academic association has roughly 600 members at the company. In Västerås, programs and expansion plans at Northvolt Labs are slowed down and in Stockholm operations at the head office are reduced.