This car company now announces unexpected job cuts, affecting 450 of its workforce globally, sources report.
Electric car maker Polestar Automotive Holding plans to cut around 450 jobs globally, or about 15% of its workforce, amid “challenging market conditions,” the Swedish company said last week.
Over the past year, many automakers have warned that the anticipated growth in electric vehicles has been slow to emerge due to poor demand, heavy price cuts, lower subsidies, and supply chain issues, reports CNBC.
Polestar in November trimmed delivery forecasts and outlined a revised business plan, aiming for its cash flow to break even in 2025 and to reduce its reliance on external funding from key owners Volvo Cars and Geely.
“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,” a Polestar spokesperson said on Friday.
The company also said in November it would double down on cutting costs to boost margins.
Polestar has, like other pure EV automakers, struggled in its goal to turning profitable.
The company earlier in January said it missed its revised 2023 deliver target as high inflation, low demand and a price war ignited by Tesla weighed on the company.
As of Thursday, more than 100 tech companies have laid off about 30,000 employees to start the year, according to layoffs.fyi.
January was the busiest month for job cuts in the industry since March.
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Also Read: An Essential Retailer Is Now Laying Off 145 Employees
Other Economy News Today
Three massive restaurant chains now begin closing locations as executives state plunging sales are the primary blame.
TGI Friday’s, Chili’s, and Hooters, are closing a total of 38 locations nationwide, reports The-Sun.
Bosses have cited a slump in sales as a reason for the closures, but some customers blame other issues.
TGI Fridays shocked the restaurant business earlier this month when it announced the closure of 36 locations nationwide.
The decision affects restaurants in 12 different states, including seven locations in New Jersey, six in Massachusetts, and five in New York.
President and COO of TGI Fridays Ray Risley described the closures as “opportunities to optimize and streamline our operations” in a press release.
Many of the restaurants have already closed, with signs on the doors informing customers that their old eatery is now gone.
Meanwhile, competitor Chili’s has closed down one restaurant this month.
Diners enjoyed their last meals at the location in the Arboretum shopping center in Charlotte, North Carolina on January 9.
The reason for the closure has been attributed to an expiring lease, a spokesperson for the restaurant chain told the Charlotte Observer.
But locals on a Reddit community for Charlotte have said the location was repeatedly understaffed.
“Not surprising,” wrote one former customer.
“Randomly stopped at this location a few months ago… they were turning people away at the door because the only wait staff they had was the bartender.”
The “breastaurant” industry is not immune to closures either, as Hooters in Lafayette, Louisiana, suddenly closed down this week.
The shutdown was completely out of the blue, with employees showing up to work on Tuesday, January 9 only to find out they no longer had a job.
One employee told local ABC affiliate KATC: “Managers didn’t mention anything.
“As far as I know, our managers didn’t know about the situation. It was a complete shock.”
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Also Read: SNAP Benefits Will Now Increase For The Year 2024
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