Polestar, the Swedish e-car firm, has reportedly announced a 15% reduction in its global workforce. This move is expected to affect around 450 employees and arises out of demanding market situations. Interestingly, this report surfaces after a report of a 6% increase in worldwide car deliveries compared to 2022, as indicated by their latest Q4 global financial statement.
Earlier in May 2023, the company had admittedly alerted about likely workforce reduction around the same time it confessed that its production targets had fallen short by a considerable 10,000 to 20,000 cars compared to its original objective. Polestar justified its actions and emphasized its amplified efforts to curtail expenses in a bid to enhance operational efficiency.
Notwithstanding last year’s shipment delays, the much-awaited 2024 Polestar 2 is gearing up with a host of new enhancements, promising increased distance coverage and quicker charging times. However, the company is concurrently grappling with apprehension that customers might be discouraged by its near $50,000 cost, especially when they can avail newer versions from competitors such as Tesla for a considerably lesser price by more than $10,000.
The EV industry has witnessed several job reductions recently, with companies like Lucid Motors announcing an 18% workforce cut last year and Rivian axing six percent. These developments could potentially be attributed to the persistent issue of supply chain disruptions in the EV sector, compounded by consumer reluctance to invest in electric vehicles.
