Northvolt cuts its workforce to 1,700 as part of the bankruptcy process

Bankruptcy battery maker Northvolt AB will continue to operate in Sweden with 1,700 staff, with the remaining employees being fired.

“It is positive that the business can continue to some extent despite the significant cuts, and this is likely important to enable full or partial sales of the business,” Northbolt bankruptcy councillor Michael Kubu said in an email.

The company had around 7,000 staff before the money shortage last year.A series of operationsIt forced it to file for bankruptcy protection in the United States.

That legal process provided Northbolt with a temporary and ultimately failed lifeline, but it attempted to gain volatile finances with a stable footing. The end of the road came earlier this month when the group saw its business and assetsIt’s for saleby a trustee appointed to the court in Sweden.

Northvolt, once considered the European answer to its country’s battery champions, has accumulated around $10 billion in debt and capital since its establishment in 2016. Several funding rounds across a variety of equipment have created a long line of lending banks and shareholders facing significant loss prospects.

Bankruptcy property has now “reached a major contract with relevant stakeholders regarding financial guarantees to carry out its ongoing business,” Kubu said, adding that the agreement will be formalized in the coming days.

This story was originally introduced Fortune.com