EV-centric brand Polestar recently announced its plans to streamline operations by reducing its global workforce, marking a significant shift in strategy as it aims to boost sales of its forthcoming Polestar 3 and 4 models without additional funding from its parent companies, Geely and Volvo Cars.
The decision comes after a challenging 2023 for Polestar, in which it failed to meet delivery targets due to delays in the release of the Polestar 3. Despite producing the Polestar 2 and its variants, the brand has yet to establish itself as a major player in the EV market.
With the Polestar 3 set to be the first US-built model and its first-ever SUV, followed by the Polestar 4 crossover, Polestar is banking on the success of these upcoming releases and is taking steps to cut costs, with the recent announcement of job cuts affecting approximately 450 employees globally.
Polestar has been transparent about its efforts to achieve break-even on cash flow by 2025, and the decision to reduce the workforce is a key part of the company’s overall business plan. Beyond the cuts, the brand is also gearing up for the production of the Polestar 3 and 4, indicating a shift in its manufacturing approach.
Challenging market conditions and slow demand for EVs overall have made it difficult for Polestar to establish its presence in the global market. However, with a strong pipeline of innovative models on the horizon, the brand is pushing forward, and despite the job cuts, remains committed to its growth and expansion in the EV space.