Porsche Layoffs: 1,900 employees to lose jobs

Porsche AG has unveiled plans to reduce its workforce by approximately 1,900 positions across its main sites in Stuttgart-Zuffenhausen and Weissach by 2029. This decision comes in response to weaker demand for electric vehicles (EVs), particularly the Taycan, and a strategic pivot back to combustion engine and hybrid models.

The company has already initiated this process by not renewing contracts for 1,500 fixed-term employees in 2024, with an additional 500 contracts now concluding.

Porsche aims to achieve these reductions through natural staff turnover and voluntary measures, adhering to a location safeguarding agreement that prohibits forced redundancies until 2030.

This restructuring aligns with Porsche’s broader strategy to invest €800 million into combustion and hybrid vehicles, addressing stagnating EV demand and aiming to enhance flexibility and resilience amid challenging geopolitical and economic conditions.

In China, Porsche’s largest market, the company is facing a structural shift in demand, leading to a 28% decline in sales last year. In response, Porsche plans to streamline its dealership network in China to cut costs and adapt to the evolving market landscape of EVs.

These measures reflect Porsche’s efforts to navigate the complexities of the current automotive market, balancing investments in traditional combustion engines with the ongoing transition to electric mobility.