Volvo-owned electric vehicle (EV) maker Polestar on Friday said that it plans to cut around 15 per cent of its global workforce.

Citing “challenging market conditions”, Polestar said that it would cut around 450 jobs globally as it deals with “challenging market conditions.”

The company in November reduced its delivery forecasts and created a revised business plan to break even by 2025 and reduce reliance on external funding from Volvo.

The Swedish automaker, like other EV makers, has struggled to turn a profit as a result of poor demand, heavy price cuts, lower subsidies and supply chain issues.

Earlier this month, Polestar conceded that it had missed its revised 2023 deliver target due to high inflation and low demand. The company also cited an ongoing EV price war spurred by price reductions from US-based Tesla.

A spokesperson for Polestar said: "As part of this business plan, we need to adjust the size of our business and operations. This involves reducing external spend and, regrettably, also our number of employees.”

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