With the threat of the brand's stock going down on the stock exchange in New York, Polestar is getting ready to fire 30 percent of its employees in the country, according to Chinese media.
From the outside, Polestar looks like an endangered car brand. And now the Chinese media write that 30 percent of the employees in the country risk losing their jobs.
The news comes on top of another news that the stock exchange in New York has once again warned the car brand that it risks going off the stock market. A so-called delisting.
The delisting, if it comes to fruition, is due to the fact that the value of the Polestar share is at a level the stock exchange will not accept. Polestar's share has now been worth less than $1 for more than 30 consecutive days.
Polestar currently has until January 2, 2025 to show that the brand can correct the course so that the share creeps above one dollar. The employees in the Chinese city of Chengdu are left fearing for their jobs.
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At least if the reports from, among others, are to be believed. FE AutoCar as Technode cites. The media writes that Polestar is getting ready for mass layoffs in September.
The same media writes that Polestar has ordered a halt in production at the factory and that the car brand will reduce the size of the Chinese headquarters in Shanghai.
The news comes just a few months after Polestar cut its workforce by 15 percent globally. The forte i.a. for layoffs in Denmark. The layoffs came after disappointing sales in the first three months of 2024.
Compared to the same period in 2023, Polestar managed to sell 7,200 cars in total. That is almost 5,000 fewer cars than in the first three months of 2022. In the world's largest car market in China alone, Polestar sold fewer than 1,000 cars in the first months of this year.
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