Polaris cuts $280 million in costs and 10% of workforce amid declining earnings

Polaris, the largest powersports maker in the U.S., cut costs by $280 million in 2024, including a 10% workforce reduction. The company reported a 90% drop in fourth-quarter earnings, reflecting a challenging retail environment and decreased consumer spending. In response to declining demand, Polaris limited shipments to dealers, resulting in a 16% decrease in off-road vehicle inventory. Despite exceeding analyst expectations for the fourth quarter, the company anticipates a 65% decline in adjusted earnings per share for 2025. Polaris continues to invest over 4% of sales in research and development, focusing on innovation. The company has launched redesigned motorcycles and new off-road vehicles, aiming to position itself for future growth as market conditions improve.