Polestar To Cut 15% Of Its Staff Globally Amid ‘Challenging Market Conditions’

The Swedish-based all-electric carmaker saw sales decline 39% in the fourth quarter of last year.

2024 Polestar 2 First Drive Review

Iulian Dnistran

By: Iulian Dnistran

Jan 29, 2024 at 10:00am ET

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Polestar, Volvo’s sister company in Geely’s growing portfolio of automotive marques, will lay off about 15% of its workforce globally, which amounts to roughly 450 people losing their jobs, the manufacturer said on Friday, according to Reuters.

The Geely-owned carmaker builds the all-electric Polestar 2 liftback, Polestar 3 SUV, and Polestar 4 coupe-like SUV that has no rear window. A low-slung four-door flagship sedan dubbed Polestar 5 is also in the works.

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After missing its sales target for 2023, Swedish-based EV maker Polestar said it plans to cut about 450 jobs worldwide, or approximately 15% of its workforce, citing "challenging market conditions."

"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."

Gallery: 2024 Polestar 2 First Drive Review

2024 Polestar 2 First Drive Review

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That said, the company’s full-year sales numbers saw a slight increase of 6%, but it was not enough to reach the updated guidance of 60,000-70,000 sales in 2023, as the year ended with roughly 54,600 sales. Initially, Polestar hoped to sell 80,000 EVs last year.

Despite smaller numbers, the company’s head honcho remained optimistic about what’s to come. “[The] Polestar 4 has been very well received in China and ramping up production was an important milestone for us,” said Thomas Ingenlath, Polestar CEO at the beginning of January. “Sales of our SUV coupé will start in Europe and Australia in the coming weeks. With the first deliveries of [the] Polestar 3 expected in the summer, our shift from being a one to three-car company positions us for a transformative and exciting 2024,” he added.

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