Novo Energy Slashes Workforce Amid Economic Challenges

Novo Energy, Volvo Cars' battery company, plans to cut its workforce by half due to economic challenges and Northvolt's bankruptcy. The company, focusing on Gothenburg operations, aims to resume full-scale production with a new partner. Volvo Cars recently became Novo's sole owner by acquiring Northvolt’s stake.

In response to the recent economic landscape and Northvolt's bankruptcy, Novo Energy, the battery arm co-established by Volvo Cars, announced substantial cuts to its workforce on Monday. Specifically, the company will reduce its staff by 50% as it reassesses its business operations.

Adrian Clarke, CEO of Novo Energy, emphasized the overwhelming financial challenges that necessitated these measures. Despite extensive efforts to secure a new technology partner, sustaining the company's current operational scale proved untenable. Novo Energy was formed in 2021 in collaboration with Northvolt to establish a battery production facility in Gothenburg, Sweden.

Earlier, in January, Novo began implementing various cost-cutting strategies, including an initial 30% reduction in its workforce. With the latest cuts, an additional 150 positions will be impacted. While Volvo Cars has assumed full ownership of Novo, ongoing cooperation with other Geely brands may become crucial for future scaling and operations.

(With inputs from agencies.)