In a significant development, Northvolt, Sweden’s prominent lithium-ion battery manufacturer, announced on Wednesday that Mark Duchesne, CEO of its flagship gigafactory, Northvolt Ett, will step down with immediate effect.
This move comes shortly after the company revealed a major cost-cutting initiative, which includes reducing its workforce by 25% in Sweden as part of a strategic overhaul aimed at stabilizing its financial position.
Northvolt Ett, located in Skellefteå, northern Sweden, is Europe’s first homegrown gigafactory, designed to produce batteries for electric vehicles (EVs).
Duchesne’s position will be temporarily filled by Angéline J. Bilodeau, who serves as Northvolt’s Vice President of Operations in North America.
Volvo Cars reshuffles leadership amid cooling demand, as Northvolt battles financial challenges and layoffs.Bilodeau will oversee operations at Northvolt Ett until the end of the year, while the company searches for a permanent replacement.
The leadership change comes in the wake of Northvolt’s announcement in September, where the company stated that it would focus its resources on accelerating production at Northvolt Ett.
As a result, Northvolt is cutting 1,600 jobs in Sweden, as a part of a broader effort to streamline operations.
This restructuring includes suspending a major expansion project at the factory that was intended to boost production capacity by 30-gigawatt hours annually.
Adding to the challenges, a subsidiary of Northvolt Ett filed for bankruptcy earlier this week, highlighting the company’s mounting financial difficulties.
The news also follows a leadership shakeup at Volvo Cars, another Swedish company grappling with shifting market dynamics.
Volvo’s deputy CEO, Björn Annwall, will step down in a management reorganization as the automaker adjusts to changing market conditions and cooling demand for electric vehicles.