Polestar to cut 15% of global workforce

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Polestar to cut 15% of global workforce
Credit: © Reuters.

Emerging Swedish electric automaker, Polestar Automotive (NASDAQ: PSNY ) revealed Friday that the company plans to cut 15% (around 150 jobs) of its global workforce, citing "challenging market conditions".

Many car manufacturers over the last year have expressed concerns about the sluggish development of electric vehicles, attributing the slow pace to factors such as weak demand, significant price reductions, reduced subsidies, and challenges in the supply chain.

In November, Polestar adjusted its delivery projections and unveiled a modified business strategy. The company aims to achieve cash flow breakeven by 2025 and decrease dependence on external funding from major stakeholders like 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 spending and, regrettably, also our number of employees," a Polestar spokesperson said on Friday.

The company also announced in November that the company would double down on cutting costs to boost margins.

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