Polestar Technology to Undergo Major Layoffs and Face Multiple Challenges

TapTechNews July 6 news, comprehensive reports from The Paper and Qiongyan Finance on July 3. One month after Qin Peiji was transferred to the chief operating officer of Polestar Technology, Polestar will usher in the 'first ever' major layoffs.

It is reported that Polestar Technology (China) will lay off about 30% of its staff by the end of September, and employees on the supply side are most affected. And half a year ago, when Polestar announced a 15% global layoff, Polestar also claimed that 'this global layoff does not involve the Chinese market'.

At the same time, the Polestar Chengdu factory has been shut down, and related production has been transferred to the Polestar Chongqing factory and Geely factory. Affected by this, a large number of employees responsible for production and supply have been laid off. One employee said, 'To stay in Polestar, social security and others will have to be transferred to Nanjing统一.'

In addition, the headquarters of Polestar located in Shanghai will also reduce the office area. Data shows that Polestar's sales in China in April this year was 305 units, and its cumulative sales in China in the first four months is less than 1,000 units.

Based on previous reports by TapTechNews, the 2023 financial report released by Polestar in late June showed that Polestar's revenue in 2023 reached 2.3777 billion US dollars (currently about 17.315 billion yuan), decreasing by 67.3 million US dollars, or 3% compared to 2022; gross profit decreased by 513 million US dollars (currently about 3.736 billion yuan); operating loss increased by 170.4 million US dollars (currently about 12.41 billion yuan), or 13%; adjusted operating loss was 542.7 million US dollars (currently about 39.52 billion yuan).

In January this year, Polestar announced plans to裁减 about 450 employees globally, accounting for about 15% of its total workforce, and this move is due to the 'challenging' current market.