Almost every third person is laid off at Novo Energy

The planned staff reduction of 120 employees was first reported by Sveriges Radio Ekot. The number affected corresponds to almost a third of Novo Energy's workforce.

"We understand the significant impact this will have on our valued employees and will offer them assistance and support", says Adrian Clarke.

Negotiations about the cuts with union representatives will now begin, writes Novo Energy in the press release.

The purpose of the measures is, according to the company, to reduce costs due to market developments and as a result of an adapted business plan.

Novo Energy is still in a build-up and development phase as a battery manufacturer.

In late October, Volvo Cars announced that it wants to take over full ownership of the currently co-owned Novo Energy. According to Volvo Cars, the other owner – Northvolt – had, due to its crisis situation, breached the shareholder agreement.

Volvo Cars, which has so far sought a new investor in Novo Energy, is said to have invested "nearly three billion kronor" in its efforts on Novo Energy last autumn.