Swedish electric car maker Polestar will lay off hundreds of employees

Swedish electric car company Polestar will cut its global workforce by 15%.. Around 450 people are expected to be laid off from the company due to current «challenging market conditions». The automaker's move comes despite a six percent increase in its global EV shipments in 2023, which it recently reported in its fourth-quarter financial report last year.

Image source: Polestar

Yet Polestar's decision is not unexpected. The company announced its intentions to reduce the number of its staff back in May last year.. The news was accompanied by reports indicating that the company's electric vehicle production volume was 10-20 thousand. fewer electric vehicles than expected. Polestar explained the future layoffs as a desire to cut costs and make the business more efficient.

Despite delivery delays last year, the new Polestar 2 range of electric vehicles boasts an increased range and support for faster charging technology.. However, the company fears that buyers may be put off by the high starting price of its electric vehicles, which starts at almost $50 thousand. while models of the same Tesla can be purchased for more than $10 thousand. cheaper.

Job cuts in the automotive industry have recently become spontaneous.. For example, last year Polestar's competitors Lucid Motors cut its workforce by 18% and Rivian by 6%. Market experts attribute everything to difficulties in the supply chain of components for production, as well as the difficult economic situation in the world.