Automotive News Europe — 2024-01-26
Automotive Industry
Polestar said it plans to cut around 450 jobs globally, about 15% of its total workforce amid "challenging market conditions."
The Swedish electric-vehicle maker has struggled to gain market share in a weakening economic environment and a slowing sales of EVs.
"As part of this business plan, we need to adjust the size of our business and operations. This involves reducing external spend and, regrettably, also our number of employees," a Polestar spokesperson said on Friday.
Since its 2022 listing in the U.S., Polestar has been tapping its key backers Volvo and Geely for new funds. That included a $1.6 billion loan last year to help cover operating costs.
Polestar in November trimmed delivery forecasts and outlined a revised business plan, aiming for its cash flow to break even in 2025 and to reduce its reliance on external funding from key owners Volvo Cars and Geely.
The company also said in November it would double down on cutting costs to boost margins.
Polestar delivered 54,600 vehicles last year, compared with its target of about 60,000.
Polestar increased sales in Europe 12% to 36,027, according to preliminary figures from market research Dataforce.
CEO Thomas Ingenlath said this month that he is optimistic for sales in 2024 with European orders for the Polestar 4 opening at the end of January and production of the Polestar 3 starting early this year after delays due to software issues.
Over the past year, many automakers have warned that the anticipated growth in EVs has been slow to emerge due to poor demand, heavy price cuts, lower subsidies, and supply chain issues.