Reuters reports that Porsche is exploring plans to cut an additional 1,900 jobs in Germany by 2029, expanding on its existing restructuring efforts. This reduction would affect about 15% of the workforce at its main facilities in Stuttgart-Zuffenhausen and Weissach. However, the outlet added that Porsche cannot carry out forced layoffs under a workplace protection contract that runs until 2030.
Porsche began laying off workers by opting not to extend the contracts of 1,500 temporary workers until 2024. Five hundred more contracts are set to expire.
A Porsche representative informed Reuters that simply cutting costs would not suffice. The representative explained that the board of directors and the labor committee have decided on a program to eliminate around 1,900 jobs across the company over the next few years.
Porsche intends to manage this workforce reduction gradually through natural attrition, demographic shifts, and a conservative hiring strategy.
A Porsche spokesperson stated that although the company remains relatively stable, it faces numerous challenges. They highlighted specific issues, such as delays in increasing the manufacturing of electric vehicles and the impact of geopolitical and economic uncertainties, among other obstacles that need to be addressed.
Meanwhile, German media Stuttgart Zeitung predicted that the loss of shares held by Porsche’s holding company, Porsche Automobile Holding, will almost double. The projected losses are now expected to range from €2.5 billion (roughly $2.58 billion) to €3.5 billion (about $3.63 billion), significantly higher than the previous estimate of €1 billion.
Furthermore, Porsche anticipates substantial depreciation of its Volkswagen shares, with potential write-downs reaching up to €20 billion (about $20.9 billion). This marks a dramatic increase from earlier projections of €7 billion (about $7.34 billion) to €20 billion (about $20.9 billion), a development that could deliver a severe financial blow to the holding company.
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