The Swedish corporation claims it made this decision because of the state of the market.
Polestar, a Swedish electric car manufacturer, is looking to reduce its employment by fifteen percent around the world. As a result of “challenging market conditions,” it is anticipated that around 450 employees would be terminated. The announcement comes despite the fact that the company’s global automobile deliveries have increased by six percent in comparison to 2022, as stated in the company’s most recent global fiscal report for the fourth quarter.
It was around the same time that the company disclosed that its production objectives were disappointingly off by 10,000 to 20,000 cars from its initial aim that the company issued a warning that it will cut its personnel. This warning was sent in May of 2023. Polestar defended its decisions and claimed that it was “intensifying its focus” on reducing costs in order to make the company more efficient.
The 2024 Polestar 2 lineup is coming in strong with a suite of new advancements, including longer mileage and faster charging, despite the fact that there were delays in shipping over the previous year. However, the corporation is confronted with the challenge of the possibility that customers would be dissuaded from purchasing the product due to its price tag of nearly $50,000, given that they can purchase newer models manufactured by competitors such as Tesla for more than $10,000 less.
There has been a widespread trend of job layoffs in the electric vehicle industry, with competitors such as Lucid Motors announcing that they will be laying off 18 percent of its workers in the previous year and Rivian laying off six percent. It’s possible that these patterns are the result of a combination of factors, including consumer reluctance to invest in electric cars and supply chain concerns, which are a significant problem in the electric vehicle sector.