Porsche's Strategic Downsizing: 1,900 Jobs to be Cut

Porsche AG plans to cut 1,900 jobs within four years after finding the current reduction program insufficient. The job cuts are concentrated at its main sites in Stuttgart-Zuffenhausen and Weissach, while avoiding forced redundancies until 2030. The company cites economic challenges and a focus on electromobility as reasons.

Porsche AG is set to reduce its workforce by an additional 1,900 positions over the next four years, expanding on a current program deemed insufficient, according to a company spokesperson.

The German car manufacturer targets a 15% reduction in staff at its key locations in Stuttgart-Zuffenhausen and Weissach by 2029. Under an agreement valid until 2030, Porsche will avoid forced redundancies. The company already started the process in 2024 by not renewing contracts for 1,500 fixed-term employees, with another 500 reaching contract conclusion.

The company's strategy includes relying on natural workforce attrition, demographic changes, and a cautious approach to hiring. Despite these challenges, Porsche maintains a strong market position but faces hurdles such as delays in electromobility advancements and challenging geopolitical and economic circumstances.

(With inputs from agencies.)