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Northvolt collapse forces Contractor to cut jobs

15/10/2025, 16:15

A Skellefteå-based construction firm has issued layoff notices to over 10% of its workforce following Northvolt’s bankruptcy, which has frozen major housing developments in the northern Swedish city.

Northvolt’s bankruptcy has dealt a severe blow to residential construction in Skellefteå. As a result, Contractor Bygg is forced to issue redundancy notices to 17 of its 136 employees, reports Norran.

“Everything has ground to a halt due to Northvolt’s bankruptcy, and I mean everything,” says CEO Kurt Nyström to the newspaper.

The company is in the process of completing 150 apartments by year-end, plus approximately the same number by summer.

But beyond that, the outlook for construction work in the city looks tougher.

“We’ve had to completely rethink our approach, and major projects have stalled. We were one of the contractors moving forward with Skebo’s student housing, which has now been paused. It’s also disappointing that certain larger construction projects have chosen to hire foreign construction firms instead of local ones,” says Kurt Nyström.

May diversify operations

Contractor is now reviewing additional areas and the possibility of broadening its operations. At the same time, there is hope on the horizon following Lyten’s acquisition of Northvolt’s bankruptcy estate.

“It’s difficult to predict the future right now, but things could turn around quickly. There’s positive news with Lyten’s rehiring, and that might get more projects moving again,” says Kurt Nyström to Norran.