Porsche to Carry Out Mass Layoffs Due to Weak Demand
German luxury carmaker Porsche will cut about 9,000 jobs by 2035. These measures are part of a large-scale restructuring effort amid falling sales in its key market of China, a slowdown in its electric vehicle development strategy, and pressure from competitors.
Porsche management and labor representatives have agreed on an additional plan to cut 5,000 positions. The process will take place without forced layoffs—through natural attrition, partial retirement, and voluntary separation programs. These plans will supplement a previously approved program to cut 3,900 jobs, as well as an additional 500 positions related to the closure of subsidiaries.
Despite the workforce reduction, the agreement provides for job and plant guarantees through the end of 2035, as well as investments totaling 2.1 billion euros ($2.39 billion) in the main plant in Stuttgart-Zuffenhausen and the research and development center in Weissach.
At the same time, a large-scale restructuring is being considered across the entire Volkswagen Group, which could involve cutting up to 100,000 jobs across the group and the risk of closing four plants after 2030.
Source: Reuters.
Earlier, the Chinese company BYD unveiled its new electric car, the Denza Z, which it is positioning as a competitor to the Porsche 911. The model is expected to debut this summer, and Daniel Craig, known for his role as James Bond, has been named the face of the campaign.
