Polestar, the Swedish manufacturer recognized as a prominent challenger to Tesla in the electric vehicle sector, has taken decisive strategic steps to restructure its global research and development operations. According to information obtained by Business Insider, the company has officially closed its two research and development facilities located in Nuneaton and Coventry, both key automotive hubs in the United Kingdom. As a consequence of this reorganization, approximately 130 UK-based employees have been laid off. Several individuals familiar with the matter revealed that staff members were informed earlier this month that all R&D activities would henceforth be transferred to Polestar’s principal headquarters in Sweden, where the company intends to consolidate its engineering expertise and technological resources. The formal redundancy process, these sources added, is projected to reach completion by the end of the current calendar year.
In a confirmation provided to Business Insider, a Polestar spokesperson acknowledged the staff reductions and the closure of the UK sites, emphasizing that these decisions were not taken lightly. In an official email statement, the spokesperson explained that the company no longer requires the same level of R&D capacity within the United Kingdom, as the main engineering work on the Polestar 5 — the brand’s forthcoming high-performance electric model — has already been completed. The statement clarified that, moving forward, all research and development will be organized under a centralized system operating directly from the firm’s Swedish headquarters. This restructuring is intended to streamline operations, enhance efficiency, and allow the company to better align its design and engineering functions with its global strategic objectives.
The spokesperson further elaborated that the company’s leadership remains dedicated to maintaining a leaner, more agile organizational structure, one capable of responding swiftly to evolving market dynamics and technological innovation. With this refined setup, Polestar aims to sustain and strengthen its commitment to creating top-tier electric vehicles distinguished by performance, design, and cutting-edge engineering. Moreover, the representative underscored that, while the business must adapt to ensure long-term competitiveness, the company’s immediate focus also rests on providing comprehensive support to those employees whose positions have been affected by the closure.
This strategic move reflects a broader pattern in Polestar’s recent corporate direction — a gradual shift of emphasis toward operations and markets within continental Europe. This pivot comes at a time when rising tariffs and trade tensions in the United States have disrupted and complicated the global automotive industry. Polestar, which is listed on the Nasdaq exchange, operates under the majority ownership of the Chinese conglomerate Geely, a diversified automotive group that also controls brands such as Volvo Cars and Lotus. The affiliation with these established names has both facilitated Polestar’s rapid growth and shaped its global manufacturing and innovation footprint.
Despite its ongoing transformation, Polestar’s presence in the United Kingdom remains noteworthy. Last month alone, the company achieved record sales, delivering 2,758 vehicles — a milestone that highlights the steady demand for its sleek, performance-focused electric models. Nevertheless, financial challenges persist. The company continues to consume cash at a significant rate, with a reported net loss of approximately $1.03 billion during the second quarter of fiscal year 2025. When compared to industry leader Tesla, Polestar’s sales volume still trails substantially. Data from the Society of Motor Manufacturers and Traders (SMMT) indicate that nearly 8,000 new Tesla vehicles were registered in the UK during the same period, underscoring the competitive intensity of the electric vehicle market.
Earlier in 2024, Polestar had already signaled a program of global workforce reductions, announcing in January that around 450 positions — roughly 15 percent of its worldwide staff — would be eliminated. Taken together, these measures illustrate the company’s determination to recalibrate its cost structure, consolidate its innovation efforts, and focus on long-term operational sustainability while continuing to pursue its goal of delivering some of the most advanced performance-oriented electric vehicles on the market.
Sourse: https://www.businessinsider.com/polestar-layoffs-uk-research-development-tesla-rival-sweden-2025-10
