It was reported a few days ago that Porsche will be cutting 1,900 jobs in Germany due to concerns about profitability amid a slowdown in the adoption of electric vehicles in Europe and an overall slowdown in growth in China.
The job cuts follow two rounds of layoffs that have already affected 2,000 employees, as detailed below.
The job cuts are said to affect employees at the Zuffenhausen plant and the research and development facility in Weissach, two of Porsche's biggest suppliers.
By the way, the Taycan is produced in Zuffenhausen, while the EV Macan is produced in Leipzig.
A Porsche spokesperson told foreign media, "Porsche is still in a relatively good position, but there are many challenges to overcome, including the slow introduction of electric vehicles and the difficult geopolitical and economic situation."
What is meant by "job cuts that have already affected 2,000 people" is that Porsche began reducing its workforce last year by not renewing the contracts of 1,500 fixed-term employees, and with a further 500 contracts expiring, the total number of job cuts will be 2,000.
According to a Porsche spokesperson, it was determined that the job cuts were still insufficient, so further job cuts are now planned.
This means a total of 3,900 job cuts, of which 151 jobs at the two aforementioned locations will be cut by 2029.
Porsche plans to avoid forced layoffs and instead reduce its workforce through voluntary measures such as early retirement and severance pay, and of course will also adopt a restrictive approach to new hires.
Porsche's car sales in 2024 will be 3% lower than in 2023Sales in China alone fell by 281 TP1T. If we look at the Taycan alone, the figure is down by 491 TP1T.
Furthermore, earlier this monthProfit margins this year are expected to be just 10-121 TP1T.It was also announced that:
Ford has also announced job cuts of 800 in the UK and 2,900 in Germany, citing sluggish demand for EVs and unprecedented competitive, regulatory, and economic headwinds as the cause.
The situation remains difficult in many ways.
Source:
◆Porsche Will Cut 1,900 Jobs Amid Sluggish EV Growth
◆Porsche Is Set To Cut 1900 Jobs, Low EV Demand Blamed
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I'm Rika, the author of this article. Ever since Porsche 911 became my favorite car, I've become totally addicted to Porsche, and I can't stop loving Porsche, so I started this blog. My favorite cars are 911 Carrera (991.2), 911 Carrera Cabriolet (992.1), and 911 Carrera T (992.1).
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