Volvo Cars' Novo Energy subsidiary announced that it would cut its workforce by 50% to reduce costs after reviewing its business operations.
The company also took the bold step of cutting 150 jobs across the organization after Northvolt Sweden went bankrupt despite originally owning a battery joint venture.
Novo Energy CEO Adrian Clarke commented that the current economic and market challenges mean that the company cannot maintain operations at its current scale.
Northvolt and Volvo Cars have partnered to form Novo Energy in 2021 to build a battery factory in Gothenburg on the west coast of Sweden.
In January, the partnership launched a cost-saving strategy and was able to reduce its workforce by 30%.
Novo Energy is determined to meet its long-term objective of producing batteries with a new technology partner in Gothenburg, Sweden.
In February, Volvo Cars agreed with Northvolt to acquire a 50% stake in Novo Energy, including Volvo Cars' planned Novo Energy battery cell factory, for a token payment.
