SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

After bankruptcy – may be forced to leave Sweden

The threat of redundancy has been hanging over the thousands of Northvolt employees for a longer period. Several risk becoming unemployed – and in many cases having to leave Sweden. It's incredibly sad, says Lena Lundgren at IF Metall.

» Published: March 12 2025

After bankruptcy – may be forced to leave Sweden
Photo: Jonas Westling/TT

Northvolt has around 5,000 employees in Skellefteå, Västerås, and Stockholm.

After a long period of great economic uncertainty, they were met on Wednesday with the news that bankruptcy is a fact.

Right now, I, or we at IF Metall, are thinking of all the employees who feel a great uncertainty, says Lena Lundgren, who is the local coordinator for the union in Skellefteå.

They have done so for a long time, but it is, of course, even more insecure now. Our focus since we received this information has been to try to be available for members.

The local Unionen club in Skellefteå writes in a comment that the bankruptcy is a heavy message for the employees.

"It is, of course, a heavy message and a very dark day for all of us who have worked hard every day and hoped that the company would get through this tough time", says Vice Chairman Shaneika Jeffrey.

Work permits at risk

When Northvolt established itself, job seekers from all over the world were attracted to the battery giant. For employees from countries outside the EU, the situation is now extra tough, according to Helene Robson, who is the chief lawyer at the trade union Sveriges ingenjörer.

It is extra precarious for them to quickly find a new job if they are laid off. Otherwise, their work permit can be revoked, and then they will not be allowed to stay in Sweden anymore, she says.

Exactly how many of the approximately 5,000 employees who are affected by the problem is unclear.

Three months

When Northvolt announced layoffs last autumn, there were around 1,700 employees from third countries, according to Hanna Geurtsen, assistant project manager for work permits at the Migration Agency. About 300 of them were laid off in connection with the notice.

The basic rule is that a person must find a new job within three months from the expiration of the notice period, otherwise, the work permit risks being revoked.

In the short term, all Northvolt employees will receive a salary via the state's wage guarantee, which is the task of the bankruptcy administrator to decide on. In the slightly longer term, many will face registration with the Employment Agency and unemployment benefits, fears Helene Robson.

If you draw parallels to other giant bankruptcies in modern times, such as Saab Automobile, it is probably inevitable that a very large part of the staff will be laid off, she says.

Tags

TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Germany's Major Loans Drive Up Interest Rates Across Europe

Germany's Major Loans Drive Up Interest Rates Across Europe

Asian Markets Diverge Amid Fed Signals and Trade Uncertainty

Asian Markets Diverge Amid Fed Signals and Trade Uncertainty

Sweden's Rent Hike Slows in 2025 but Remains a Struggle for Many

Sweden's Rent Hike Slows in 2025 but Remains a Struggle for Many

Akelius Foundation and Partners Raise 125 Million Kronor for Gaza Education

Akelius Foundation and Partners Raise 125 Million Kronor for Gaza Education

US to Impose Hefty Tariffs on April 2 in Trade War Escalation

US to Impose Hefty Tariffs on April 2 in Trade War Escalation

Snus Deliveries Secure as Strike Notice Withdrawn in Sweden

Snus Deliveries Secure as Strike Notice Withdrawn in Sweden

Navigating Mortgage Decisions Amid Economic Uncertainty

Navigating Mortgage Decisions Amid Economic Uncertainty

Svantesson Urges Shared Responsibility to Tackle Rising Food Prices

Svantesson Urges Shared Responsibility to Tackle Rising Food Prices

Tesla Recalls Cybertrucks, Market Dips Amid Fed Rate Hold

Tesla Recalls Cybertrucks, Market Dips Amid Fed Rate Hold

EU Delays Bourbon Tariffs, Seeks Talks with Trump Administration

EU Delays Bourbon Tariffs, Seeks Talks with Trump Administration

Bank of England Holds Interest Rate Steady Amid Inflation Concerns

Bank of England Holds Interest Rate Steady Amid Inflation Concerns

Geely's Profit Soars in 2024 with Strategic Shift and Sales Boost

Geely's Profit Soars in 2024 with Strategic Shift and Sales Boost

Mercedes CEO Calls for Zero Tariffs to Boost US-EU Trade

Mercedes CEO Calls for Zero Tariffs to Boost US-EU Trade

Swedish Central Bank Holds Steady on Interest Rates Amid Inflation Concerns

Swedish Central Bank Holds Steady on Interest Rates Amid Inflation Concerns

Swedish Central Bank Holds Rates Steady, Ready to Act on Inflation

Swedish Central Bank Holds Rates Steady, Ready to Act on Inflation

Ericsson Gains Amid Stockholm Stock Exchange Dip

Ericsson Gains Amid Stockholm Stock Exchange Dip

Sweden Tackles Rising Food Costs: Government Meets with Industry Leaders

Sweden Tackles Rising Food Costs: Government Meets with Industry Leaders

China Holds Steady on Interest Rates Amid Economic Challenges

China Holds Steady on Interest Rates Amid Economic Challenges

Trump Calls on Fed to Lower Interest Rates Amid Economic Uncertainty

Trump Calls on Fed to Lower Interest Rates Amid Economic Uncertainty

Rising Trend: 1 in 5 Swedes Boycott American Brands

Rising Trend: 1 in 5 Swedes Boycott American Brands

U.S. Stock Markets Surge as Fed Holds Interest Rates Steady

U.S. Stock Markets Surge as Fed Holds Interest Rates Steady

Fed Holds Interest Rates Steady Amid Economic Uncertainty

Fed Holds Interest Rates Steady Amid Economic Uncertainty

Sweden's Finance Minister Pushes for Lower Food Prices Amid Talks

Sweden's Finance Minister Pushes for Lower Food Prices Amid Talks

Sweden's Economy Faces Higher Unemployment Despite Growth Signs

Sweden's Economy Faces Higher Unemployment Despite Growth Signs

Another Major Bank Raises Mortgage Interest Rates

Another Major Bank Raises Mortgage Interest Rates

European Inflation Revised Downward

European Inflation Revised Downward

Stockholm Exchange Sees Slight Gains Amid Mixed European Markets

Stockholm Exchange Sees Slight Gains Amid Mixed European Markets

More and more rush to declare

More and more rush to declare

Inflation Expectations Rise

Inflation Expectations Rise

Wallenberg does not believe in state rescue of Northvolt

Wallenberg does not believe in state rescue of Northvolt

Hard to find an apprenticeship for vocational programs

Hard to find an apprenticeship for vocational programs

Record win for Skistar: Prioritizing the mountains

Record win for Skistar: Prioritizing the mountains

Forecast: Cheap Electricity Due to High Water Levels

Forecast: Cheap Electricity Due to High Water Levels

Swedish trade unique - "can be price-increasing"

Swedish trade unique - "can be price-increasing"

Mostly Upwards on Asian Stock Exchanges

Mostly Upwards on Asian Stock Exchanges

Japan leaves the interest rate unchanged

Japan leaves the interest rate unchanged

SBAB: The Central Bank lowers the interest rate after the summer

SBAB: The Central Bank lowers the interest rate after the summer

Nvidia rolls into GM's vehicles

Nvidia rolls into GM's vehicles

Wallenberg outraged by food boycott

Wallenberg outraged by food boycott

Now Northvolt's layoffs begin: "Tough days"

Now Northvolt's layoffs begin: "Tough days"