Swedish electric car company Polestar is slashing its workforce by 15 percent globally. About 450 employees are expected to be let go due to “challenging market conditions.” The news comes despite its six percent increase in global car deliveries compared to 2022, according to its recent fourth quarter global fiscal report.
The company did, however, warn that it would reduce its headcount back in May 2023 which was around the same time it announced its production goals were disappointingly off by 10,000 to 20,000 cars from its initial goal. Polestar defended its decisions and explained it was “intensifying its focus” on cutting costs to make the business more efficient.
Despite delays in shipments last year, the 2024 Polestar 2 lineup is coming in strong with a suite of new upgrades, including longer mileage and faster charging. However, the company is faced with the issue that buyers might be turned off by its nearly $50,000 price tag when they can get newer models produced by rivals like Tesla for more than $10,000 less.
Job cuts across the EV sector have become commonplace, with rivals like Lucid Motors’ announcement to cut 18 percent of its workforce last year and Rivian slashing six percent. These trends might be due to the fact that supply chain issues are a huge problem in the EV industry, coupled with buyer hesitancy to invest in electric cars.