The crisis in the automotive industry has hit Porsche. The Germans with a factory in Zuffenhausen are also experiencing a decline in sales. As a result, 1,900 employees will be laid off by 2027.
Porsche is facing significant downsizing, specifically saying goodbye to 1,900 employees by 2027. Management believes the decision is necessary because sales of electric cars in particular are failing.
The car brand has previously tried to fight its way out of a bad economy by not renewing the contracts of 1,500 employees on short-term contracts. But that turns out not to be enough.
This is reported by the newspaper Bild .
Therefore, management has now decided to implement further cuts. By 2027, the total number of employees is expected to be reduced by 1,900.
– The company management, in consultation with the union, has decided on a program that involves a reduction of 1,900 positions across the entire company over the coming years, the company writes in a statement.
The announcement comes shortly after a period of internal turmoil within management.
Several high-ranking directors have left their positions, and there is speculation that the top boss, Oliver Blume, will also be asked to resign.
The cuts will primarily affect Porsche's facilities in Stuttgart, Zuffenhausen and Weissach. Porsche points to the sales of electric cars as one of the primary reasons for the crisis, as they have not been able to meet expectations.
The slumping sales have made the Germans reconsider their strategy. This means, among other things, that Porsche will spend 800 million euros on new cars with combustion engines over the next few years.
– Compared to others, we are in a good position. But there are many challenges, also when it comes to electrification. But the tense geopolitical conditions and the general economic situation also make the situation difficult, says Zuffenhausen.
Porsche has a collective agreement with its employees that prevents direct layoffs by 2030.
To get around this, the company will instead refrain from re-filling positions when employees retire or leave the company for other reasons.
At the same time, management will be very reluctant to hire new employees.
Porsche employs around 37,000 people in Germany. In addition to the locations mentioned, the brand also has a factory in Leipzig.
