COPENHAGEN (Reuters) -Volvo Cars’ Novo Energy said on Monday it will cut its workforce by 50% to reduce costs after an evaluation of its business following the bankruptcy of Sweden’s Northvolt, which originally co-owned the battery venture.
It was not immediately clear how many jobs were affected.
“Despite our best efforts to secure our business and an extensive ongoing search for a suitable new technology partner, the current economic challenges and market conditions have made it impossible to maintain our operations at the current scale,” Novo Energy CEO Adrian Clarke said in a statement.
The company said that producing batteries with a new technology partner in the Gothenburg area of Sweden remained its primary long-term objective.
Volvo Cars in February agreed with Northvolt to take over its 50% stake in Novo Energy, which included a planned Gothenburg battery cell factory, paying only a token sum.
Northvolt, once considered Europe’s best hope for a battery champion, filed for bankruptcy in March.
(Reporting by Louise Breusch Rasmussen, editing by Terje Solsvik)
