Polestar to cut 15pc of workforce

Sino-Swedish OEM Polestar will cut 15pc of its workforce this year — around 450 people — as it responds to challenging market conditions and lower annual volume expectations in 2025.

In November last year the EV manufacturer presented a new business plan designed to improve margins and lower production with an aim of reaching break-even in 2025.

The company delivered 54,600 cars globally in 2023, well below its target of 60,000-70,000. It now aims to have a total annual production volume of approximately 155,000-165,000 EVs by 2025, almost half its previous target of 290,000.

“As part of the business plan presented in November last year, we need to adjust the size of our business and operations," Polestar says. “This involves reducing external spend and, regrettably, also our number of employees.”

As part of the same November business plan Polestar also restructured its loans to provide additional liquidity to fill a $1.3bn funding gap.

The firm has already taken steps to cut costs, including eliminating 300 positions in a programme announced at its Q1 results in May last year.

New launches

Polestar's leaner operation this year will focus on marketing three cars, with ethe Polestar 3 SUV and Polestar 4, SUV coupe joing the existing Polestar 2 performance fastback.

“Polestar 4 has had a strong debut, starting production and deliveries in in Q4, with sales opening in Europe and Australia next week. Polestar 3 is close to starting production, with first deliveries expected to start in Q2,” says the firm’.

Polestar hopes the launch of the Polestar 3 and 4 will help boost profitability and has said that it expects to grow volumes after 2025. It plans to have a line-up of five performance EVs by 2026 — adding Polestars 5 and 6, a four-door GT and a roadster respectively, to the range by that date.

Polestar will release its full year 2023 results on 29 February. The firm's share price has fallen by nearly 62pc over the past year to $2.20/share as of Friday.