Written by Cláudio Afonso | LinkedIn | X
Polestar has begun layoffs in China, affecting around 50 employees, including sales and operations staff, Chinese media outlet LatePost reported on Friday, citing internal sources.
The layoffs come as the Geely-backed EV maker scales back its presence in China. Employees impacted by the latest round of job cuts will receive N+1 compensation, according to the report.
“This is the final round of layoffs. The entire team is being withdrawn, leaving only some after-sales personnel to wrap up operations,” an internal source told LatePost.
Polestar established its China subsidiary in 2020. A year ago, the company announced plans to cut approximately 450 jobs globally—around 15% of its workforce—citing “challenging market conditions.”
China Market
Polestar launched the Polestar 4 in China on April 17, 2023, at the Shanghai Auto Show, with a starting price range of 349,800 to 533,800 yuan — between $48,000 and $73,200.
In November 2023, it lowered the model’s starting price to RMB 299,900 by removing an initial benefit package. Deliveries began a year ago with four versions priced between 299,900 and 399,900 yuan, equivalent to $54,800.
“We expect 2025 to be the most successful year in Polestar’s history,” CEO Michael Lohscheller said during a major business update.
Polestar appointed Jonas Engström as chief operating officer earlier this year, replacing Dennis Nobelius, who left in September 2023 after three years in the role.
U.S. Sales
In the U.S., Polestar sold 505 vehicles in January 2024, down from about 800 units in the same month a year earlier, according to Motor Intelligence. The Polestar 3 starts at $67,500, with lease plans beginning at $599 per month for 27 months. The launch edition, which includes the Pilot and Plus packages and faster delivery, is priced at $78,900.
Polestar delivered 12,256 vehicles in the fourth quarter of 2024, bringing full-year sales to 44,851 units, down 15% from 52,796 in 2023. However, the company said total order intake rose 37.2% year-on-year in Q4 2024 and increased 37.9% for the full year compared to 2023.