Frankfurt, Germany – Porsche announced plans to cut 1,900 jobs due to declining sales in China and challenges in transitioning to electric vehicles, adding to Germany’s struggling auto industry
Frankfurt, Germany – Porsche announced plans to cut 1,900 jobs following declining sales in China and challenges in shifting to electric vehicles, marking another setback for Germany’s struggling auto industry.
The job reductions will take place over the next few years at Porsche’s Stuttgart headquarters and nearby research center, the company said.
Germany’s auto sector is facing mounting difficulties, including high domestic manufacturing costs, weak demand, increasing competition, and a slow EV transition. “We have many challenges to overcome,” said Porsche’s HR chief Andreas Haffner in an interview with Stuttgarter Zeitung.
He cited delays in EV adoption and economic uncertainty but assured that no compulsory redundancies would be made.
Porsche, which employs around 42,000 people worldwide, had already begun reducing its workforce last year by letting temporary contracts expire. However, the company now sees the need for deeper cuts.
Once among Volkswagen Group’s most profitable brands, Porsche has seen its fortunes decline, with global deliveries falling by 3% last year, including a significant 28% drop in China.
Germany’s major carmakers have been losing market share in China due to rising competition from domestic EV manufacturers, despite years of heavy investment. The slower-than-expected EV adoption has further strained their strategies.
In response, Porsche recently announced plans to focus more on combustion engine and plug-in hybrid models to bolster profitability. The company also faced internal turmoil this month, with two top executives departing unexpectedly after reported conflicts with management.
