Amidst dropping China sales, high German production costs, intense competition and a slower-than-expected shift to EVs, Porsche wants to cut 1,900 more jobs at its Stuttgart headquarters and Weissach research centre over the next four years, reports AFP and Reuters.
Once among the Volkswagen Group’s more profitable firms, Porsche delivered 3% fewer cars in 2024, year-on-year, including a 28% drop in China. The carmaker, whose global workforce numbers around 42,000, already started down-sizing last year by not renewing 1,500 contract staff in Germany, but has now decided it needs to do more.
“We have many challenges to overcome,” Porsche human resources chief Andreas Haffner told Stuttgarter Zeitung, citing “the delayed ramp-up of electromobility and challenging geopolitical and economic conditions” while stressing that no cuts would be made via forced redundancies.
Porsche said last week that moving forward, it’s going to shift its focus away from EVs and to combustion-engined and plug-in hybrid (PHEV) vehicles. Other parts of Volkswagen are also not doing too well at the moment – by 2030, the group aims to cut 35,000 jobs and reduce production capacity by 734,000 units across its affected German plants.
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Porsche and VW is reinvesting in combustion engine model. Its value was wiped half due to irrationally switching to EV thinking it might be pioneering the game and the world will turn the wind amd follow blindly. But hard reality tell the other thing. Their investor is uoset and the board is changing because of huge loses. I guess BMW did the right choice by betting save on EV and continueing combuation engine development. MERC is too bleeding with EQ model. So BMW is the wise winner here. The west is returning to combustion engine before EV even touch ground. Now the South East Asia is following China chess game blindly will see whats the outcome in a few years. China own market is too crowded and brand is closing down. Only that few brand include BYD is standing high probably from China Gov aid. Malaysian is dumping EV too. I see so much fewer Tesla or EV lately not even Taycan. Neighbour is selling their iX and Taycan hiding reasons with a smile. When asked wanna change to another EV, just smile and shake head. They now replace their EV and booked the new 2025 530i Wonder why?