EV Brand Slashes Workforce by 40%

Electric car brand Zeekr, part of the Chinese Geely group, has announced it will lay off 280 employees at its Gothenburg office—amounting to nearly 40% of its local workforce.

The news, which came as a shock to staff, coincided with the company’s latest financial results showing continued losses despite rising revenue.

The Gothenburg office plays a key role in Zeekr’s global operations, housing much of its design and development team.

Swedish Radio reports that, in addition to permanent staff cuts, the company is also reviewing contracts with external consultants—raising the possibility of even more job losses.

“Focused on Europe, Focused on Efficiency”

In a statement, Zeekr said the layoffs are part of a broader plan to streamline operations and cut costs:

These initiatives are part of our ongoing efforts to reduce operating costs and improve efficiency.

Zeekr emphasized that the changes apply only to its European division, adding that the goal is to take a “disciplined approach” to operating more effectively in a competitive EV market.

Geely has recently moved to buy out other shareholders, taking Zeekr off the stock market entirely.

Revenue Up, Losses Still Heavy

Zeekr’s quarterly earnings showed a 19% increase in revenue, suggesting growing interest in its vehicles.

But the company still posted a loss of $105 million, albeit a smaller deficit than the same quarter last year.

The blow to Zeekr’s workforce adds to growing unease in Gothenburg’s automotive sector.

Sister company Volvo Cars is also in the middle of major cost-cutting measures, with savings of up to $1.7 billion on the horizon—likely to hit administration and development teams the hardest.

Adding to the pressure, Volvo’s battery venture, Novo Energy, recently cut half of its workforce.