Polestar Streamlines Operations by Closing UK R&D and Reducing Workforce

In a strategic shift, electric vehicle manufacturer Polestar has decided to shutter its research and development facilities in the UK, resulting in the dismissal of 130 employees. According to revelations from sources, employees were informed earlier in the month that the company's R&D activities will be transitioned from Nuneaton and Coventry to the company's main office in Sweden. This restructuring is anticipated to be completed within the year.

A company representative confirmed the news, explaining that the R&D capacity in the UK is no longer necessary as the development work for the upcoming Polestar 5 model has concluded. Consequently, all R&D operations are being consolidated at the Swedish headquarters.

The spokesperson also emphasized Polestar's streamlined organizational approach aimed at optimizing the development of high-performance EVs. There is a strong commitment to offering support to those affected by these staff changes.

Polestar has been increasingly focusing its efforts on the European market, driven by trade challenges in the U.S. automotive industry. The company, listed on Nasdaq, is majorly owned by Geely—a Chinese corporate giant also possessing Volvo Cars and Lotus.

Despite achieving record sales of 2,758 vehicles in the UK last month, the Swedish luxury carmaker is facing financial pressures, having reported a net loss of $1.03 billion in the second quarter of 2025.

Comparative Market Performance with Tesla

While Polestar endeavors to catch up, it trails behind industry leader Tesla, which had nearly 8,000 new car registrations in the UK during the same timeframe, highlighting a significant sales gap.

Back in January 2024, the firm revealed a plan to reduce its global workforce by approximately 450 employees, representing around 15% of its total staff.