Porsche Will Cut 1,900 Jobs Amid Sluggish EV Growth

Porsche, the renowned luxury sports car manufacturer, is undergoing a restructuring process to navigate the shifting automotive industry and address economic challenges. The company has announced plans to reduce its workforce by 1,900 jobs at its Stuttgart headquarters and Weissach research centre by 2029.

These job cuts are attributed to a sluggish transition to electric vehicles (EVs) and broader economic and geopolitical challenges faced by the German auto sector, which has long been a dominant force in the global market.

Andreas Haffner, Porsche's human resources chief, acknowledged the difficulties ahead but assured that the job losses would not be compulsory.
Porsche, formerly one of the Volkswagen Group's most lucrative businesses, saw a 3% reduction in global auto deliveries in 2024, with a particularly alarming 28% drop in sales in China.



The automaker began reducing employment last year by refusing to extend the contracts of 1,500 fixed-term workers, and another 500 are currently nearing the end of their employment.

Having been deemed "insufficient," Porsche intends to reduce the workforce through voluntary measures like early retirement and severance compensation rather than through compulsory layoffs.

The German carmaker itself has experienced delays in accelerating its electrification initiatives, and the decline in sales coincides with a fundamental shift in the automotive industry towards EVs.

However, Porsche, well known for the legendary 911 recently said that it would refocus on its fundamental capabilities, which include combustion engines and plug-in hybrid vehicles (PHEVs), in spite of the industry's push towards electrification.