Porsche Layoffs: German Luxury Automobile Giant To Cut 1,900 Jobs Amid Weak EV Demand and Economic Challenges
Stuttgart, February 14: German automobile giant Porsche will reportedly cut 1,900 jobs amid facing challenging geopolitical and economic challenges. The Porsche layoffs will affect these employees by the end of this decade as the company suffered from weak EV demand. The reports have mentioned that Porsche AG would reduce its workforce from two of the main sites in Germany.
According to reports, the Porsche layoffs, resulting from poor electric vehicle demand, would be implemented as voluntary measures like early retirements and severance packages. With this decision, the company will reportedly take a “restrictive approach” to the new people it hires in the future. It is said that the company will reduce 15% of the staff from Zuffenhausen and Weissach by 2029. Volkswagen Layoffs: German Automaker VW To Slash Tens of Thousands of Jobs, Impose 10% Salary Cut As 3 Plants To Be Shut In Germany.
The reports mentioned that the German automaker had been facing a decline in the demand for EVs amid a global shift. The company was unable to meet its electric vehicle targets last year and also had to face poor deliveries in China. Due to this, Porsche layoffs were considered an inevitable option to cut costs.
Porsche is expected to suffer USD 831 million losses (around 800 million euros) in 2025 over developing its new products offering combustion engine (ICE) and plug-in hybrid models. By 2030, the luxury automobile market would implement job cuts as voluntary measures amid job security agreements for all German employees.
The reports said that the Porsche layoff decision was related to stopping the renewal of employee contracts. Due to the rise in electric vehicles in the market, luxury brands have adopted the trend and introduced alternate solutions to their current ICE models. JPMorgan Chase Layoffs: US-Based Financial Firm Cuts Nearly 1,000 Jobs Despite Strong Financial Performance, Plans More Rounds of Layoffs in 2025.
According to a report by Hindustan Times, Porsche has been following Volkswagen’s lead to reduce its production costs in Germany amid rising labour costs. VW announced laying off 35,000 employees to bring down the cost of production in the next five years.
(The above story first appeared on LatestLY on Feb 14, 2025 12:50 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).
