Polestar axeing 450 jobs

Polestar has announced plans to axe about 450 jobs worldwide, which is equivalent to about 15 per cent of its workforce, amid “challenging market conditions”.

The electric vehicle (EV) maker produced a revised business plan and cut its delivery forecasts in November last year with the aim of cash flow breaking even in 2025, reports Reuters.

It also sought to reduce its reliance on external funding from its main owners, Volvo Cars and Geely.

“As part of this business plan, we need to adjust the size of our business and operations. This involves reducing external spend and, regrettably, also our number of employees,” says a Polestar spokesperson.

The Swedish company has struggled to gain market share and delivered 54,600 vehicles last year, compared with its target of about 60,000.

A number of carmakers have warned the anticipated growth in EVs has been slow to emerge due to lower demand, price cuts and supply chain issues, reports Reuters.