Porsche to cut 9,000 jobs by 2035

The German luxury car manufacturer Porsche has announced that it plans to cut 9,000 jobs by 2035 due to the restructuring of the parent Volkswagen group in the face of weak demand and fierce competition. This was reported by Reuters on July 27.

Earlier, it was decided to cut 3.9 thousand jobs and about 500 more jobs in subsidiaries. Now, as part of a new agreement approved after several months of negotiations, Porsche management and trade union representatives have agreed to cut another 5,000 jobs. It is planned to avoid forced layoffs and make cuts mainly through retirement, staff turnover and voluntary redundancy programs.

The agreement also provides guarantees for the preservation of production sites over the next five years and investments of 2.1 billion euros in the main plant in Stuttgart-Zuffenhausen and the research center in Weissach.

As Carscoops noted, Porsche has long been one of Volkswagen's most successful brands, consistently demonstrating high profits thanks to its more expensive models. However, the company recorded a 93% drop in operating profit last year, partly caused by costs related to international duties, as well as lower sales in China and a focus on new electric vehicles. Earlier this year, Porsche CEO Michael Leiters said that Porsche would focus more on high-margin models such as the 911, as well as simplify its product line.

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On July 9, Volkswagen employees protested against the reduction of up to 100,000 jobs and plans to close four factories located in Germany. The actions were held at the automaker's enterprises, including at the headquarters in Wolfsburg. According to the estimates of the IG Metall trade union, about 400 people protested.