Staff cuts in sight for Polestar. The Swedish brand has in fact announced its intention to lay off around 450 employees globally, a figure that is equivalent to 15% of the brand's workforce worldwide. Polestar argued that the decision was made due to current difficult market conditions.
Polestar's layoffs
“As part of this business plan, we need to adjust the size of our business and operations. This leads to a reduction in external expenses and, unfortunately, also in the number of employees”, explained a Polestar spokesperson. The brand went public in the US in 2022, with parent company Volvo and shareholder Geely supporting efforts to gain market share with a $1.6 billion loan during 2023, as also highlighted by Automotive News Europe.
Fluctuating situation
Last November, Polestar revised its sales forecast downwards, launching a new financial plan to break even on cash flow in 2025 and reduce reliance on external financing by major Volvo owners. Cars and Geely. Polestar's objective would have been to reduce costs to increase margins and so the layoff program was also implemented. For 2024, the CEO of the Swedish brand Thomas Ingenlath expects a growth in registrations, thanks to the entry into the range of Polestar 4 and the start of production of Polestar 3 after delays due to problems with the software.
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