Porsche to cut 1900 jobs by 2029

Porsche plans to cut around 1900 jobs by 2029 at its main sites in Stuttgart-Zuffenhausen and Weissach. The decision comes after a review of current optimization programs that proved insufficient.

The company previously did not renew the contracts of 2024 temporary workers in 1500, and another 500 contracts are now ending. Since the job retention agreement runs until 2030, forced layoffs are out of the question. Instead, Porsche is relying on natural attrition and limiting hiring.

These reductions come amid a decline in demand for electric vehicles, particularly the Taycan model, which has led to a 49% drop in sales in 2024. The decline is particularly notable in China, where sales fell by 28%.

In response, the company announced an investment of 800 million euros in the development of new models with internal combustion engines and hybrid systems. This decision is intended to balance the product portfolio and adapt to changes in the market.

Additionally, Porsche has begun negotiations to terminate the contracts of CFO Lutz Meschke and Head of Sales and Marketing Detlev von Platen due to weak electric vehicle sales. The changes come amid a challenging geopolitical and economic situation that is affecting the company's operations.