Carmaker Porsche is reportedly planning to layoff an additional 1,900 people in Germany by 2029, following a review of an ongoing programme deemed insufficient.
The German carmaker, which is majority-owned by Volkswagen, is to reduce positions by 15% at its main sites in Stuttgart-Zuffenhausen and Weissach in southwestern Germany, reported Reuters citing a company spokesperson.
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However, under a location safeguarding agreement in place until 2030, Porsche said it cannot enforce compulsory redundancies.
The job reduction process began in 2024 with Porsche choosing not to renew the contracts of 1,500 fixed-term employees. An additional 500 contracts are also set to conclude, the spokesperson said.
The spokesperson was cited by the news agency as saying: “That alone is not enough: the Executive Board and Works Council have therefore decided on a programme to cut around another 1,900 jobs across the entire company in the coming years.”
The company plans to manage the reductions through natural attrition, demographic shifts, and a cautious hiring policy.
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By GlobalData“Porsche is still in a comparatively good position. But there are many challenges to overcome – such as the delayed ramp-up of electromobility or the challenging geopolitical and economic conditions,” the spokesperson added.
The local Stuttgarter Zeitung newspaper reported first on Porsche’s plans.
Recently, Porsche Automobil Holding, the holding company of Porsche, forecasted that impairments on its stake in the luxury carmaker will nearly double, reaching between €2.5bn ($2.58bn) and €3.5bn ($3.63bn).
This is a significant increase from the earlier expected impairment range of €1bn to €2bn.
Furthermore, Porsche anticipates writedowns related to its top shareholding in Volkswagen, which could potentially reach up to €20bn.
This expands the previously expected range of €7bn to €20bn, indicating a substantial financial impact on the holding company.
