Polestar has announced plans to cut around 15 percent of its workforce around the world, as the Volvo-owned electric vehicle (EV) maker looks to reduce costs and work toward making its products profitable.
Citing “challenging market conditions,” Polestar announced plans on Friday to get rid of around 450 positions worldwide, according to a report from Reuters. The layoffs come as many have aired concerns about cooling EV demand, and ahead of Polestar’s expectations that the auto business will start breaking even as soon as 2025.
“As part of this business plan, we need to adjust the size of our business and operations,” a Polestar spokesperson said. “This involves reducing external spend and, regrettably, also our number of employees.”
The company also said it hopes to reduce its dependence on Volvo and its parent company, Geely, for external funding, and it has recently said it hopes to cut costs and increase margins on its EVs.
In November, Polestar cut its delivery forecast for 2023 and detailed an updated business plan for the lowered guidance, dropping its estimate from 80,000 units to a range of 60,000-70,000. At the time, Polestar had received loans from Volvo and Geely amounting to roughly $450 million.
Earlier this month, Polestar announced its global deliveries for 2023, noting that it missed its revised forecasts with roughly 54,600 cars delivered throughout last year, marking a 6 percent increase year over year.
The Polestar 4 SUV coupe also entered production in November, and the automaker surpassed a milestone of 150,000 vehicles delivered since it first began producing the Polestar 2 in 2020. According to a post on LinkedIn from CEO Thomas Ingenlath, the Polestar 4 began limited deliveries around Christmas, and sales are expected to open in Europe and Australia on January 31.
In addition, the Polestar 3 has garnered positive reviews ahead of its initial deliveries, and it’s expected to begin deliveries later this year.