Polestar cuts 300 jobs, reduces sales forecast

Polestar is cutting jobs and has reduced its 2023 volume forecast by as much as a quarter.

The automaker said on Thursday that it will cut its global headcount by 10 percent, or about 300 jobs, and institute a hiring freeze. The company will also keep from adding the 500 jobs it intended for this year.

Polestar joins sister brand Volvo in cutting jobs. Volvo said this month that it will lay off around 1,300 office-based employees in Sweden as it steps up its cost cutting.

Polestar and Volvo both said on Thursday that they are delaying the production starts of their new all-electric flagship SUVs -- the Volvo EX90 and Polestar 3 -- to do further work on software development and testing.

“Given the tougher economic climate, it is difficult for us to compensate for the absence of the Polestar 3 volumes with incremental Polestar 2 volume,” Polestar CFO Johan Malmqvist said on an earnings call Thursday. “That, coupled with high market uncertainties, led us to call down the volumes.”

Polestar now expects 2023 global volumes of 60,000 to 70,000, compared with its earlier forecast of about 80,000 units. Polestar delivered 51,491 units last year.

Polestar CEO Thomas Ingenlath said the company is "taking necessary steps to strengthen" the company in the near term.

The volume forecast adjustment would also help the automaker protect the profit margin on the Polestar 2, he said.

“We are intent not to push cars into the market for any price just to achieve a volume that we once announced,” Ingenlath said on the call.  Lowering sales estimates “gives us the opportunity to maintain the right balance between the volume that we achieve and what we achieve in terms of margins and price stability with our products.”