Swedish electric-vehicle maker Polestar has announced the closure of its two United Kingdom research-and-development centres in Nuneaton and Coventry, triggering about 130 job cuts.

The firm confirmed that its engineering work on the upcoming Polestar 5 model is complete and that R&D will be consolidated at its Swedish headquarters.

Polestar said the redundancy process is expected to finish by year-end.

The decision reflects a shift in focus away from UK engineering capacity, with the company stating it “no longer requires the R&D capacity in the UK now that the engineering work for the Polestar 5 … is complete.” Polestar employed around 2,100 people globally.

The move comes as Polestar reported a net loss of US$1.03 billion for the second quarter of 2025. Although the company achieved a UK sales record of 2,758 vehicles in the month preceding the announcement, it continues to trail behind dominant rival Tesla, which logged nearly 8,000 new UK registrations in the same period.

Polestar, which is majority-owned by the Chinese conglomerate Geely, said that consolidation of its global engineering functions is part of a broader strategy to focus on performance EVs and a leaner organisational structure.

The company also cited tariff pressures in the United States and a strategic pivot toward Europe as factors driving the change.

The adjustment is the latest in a series of cost-cutting and restructuring moves at Polestar.

In January 2024 it announced a global lay-off of 450 employees—about 15 per cent of its workforce—with this latest reduction representing a further tightening of its manufacturing and development footprint.

As Polestar centralises its R&D in Sweden and trims UK employment, it faces the dual challenge of restoring profitability and maintaining innovation in a competitive EV market dominated by Tesla and other legacy manufacturers.