Porsche AG Unveils Workforce Reduction Plan

In a bold move to navigate through challenging economic times, Porsche AG has announced a strategic plan to reduce its workforce by 3,900 positions by the year 2029. This decision is part of a comprehensive program aimed at rescaling the company to ensure its future growth and sustainability.

Details of the Workforce Reduction

Of the total job cuts, 1,900 positions will be eliminated through natural turnover, decreased hiring, partial retirement, and severance packages. Additionally, 2,000 jobs will be phased out through the expiration of fixed-term employment contracts. This approach reflects Porsche's commitment to minimizing the impact on its employees while achieving its strategic goals.

Financial Performance and Future Investments

Reflecting on the year 2024, Porsche acknowledged the impact of the challenging economic environment and the comprehensive renewal of its product portfolio on its earnings, which saw a slight decrease of 1% year-on-year to €40.1 billion. In response, Porsche plans to invest €800 million in rescaling efforts, including its product portfolio, software development, and battery technology activities, signaling a strong commitment to innovation and future growth.

Following the announcement, Porsche's stock experienced a 4.11% drop at 9:47 am CET, reflecting the market's immediate reaction to the news.