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Cuts: Northvolt said it would cut 1,600 jobs in Sweden, a quarter of its workforce in its home country
Europe’s top electric car battery maker is to cut one in five jobs as demand for vehicles remains stagnant.
In another blow to the industry, Northvolt said it would cut 1,600 jobs in Sweden, a quarter of its workforce in its home country.
Chief Executive Peter Carlsson said: “While the overall momentum towards electrification remains strong, we need to ensure we take the right steps at the right time in response to headwinds in the automotive market and the broader industrial climate.”
The company was once considered the rising star of European battery production.
But earlier this month, Northvolt said it would scale back its commitments and cut costs in the face of a “challenging” market.
The Swedish group, which employs around 6,000 people worldwide, has suffered as demand for electric cars slows and production delays hit the industry.
It was also hit when Germany’s BMW cancelled a £1.7bn battery order earlier this year.
Northvolt was founded in 2017 by former Tesla executives Carlsson and Paolo Cerruti.
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