Porsche AG Unveils Comprehensive Rescaling Program

In a strategic move to adapt to the evolving automotive landscape, Porsche AG has announced a significant workforce reduction. By 2029, the luxury car manufacturer plans to cut 3,900 jobs. This decision is part of a broader initiative aimed at rescaling the company for future challenges and opportunities.

Impact on Employees and Company Strategy

Out of the total job cuts, 1,900 positions will be eliminated through natural turnover, reduced hiring, partial retirement, and severance packages. An additional 2,000 jobs will be phased out as fixed-term employment contracts expire. Porsche's strategy reflects its commitment to maintaining a competitive edge in the industry while ensuring long-term sustainability.

Financial Performance and Future Investments

Reflecting on 2024, Porsche acknowledged the impact of a challenging economic environment and the comprehensive renewal of its product portfolio on its earnings. The company reported a slight decrease in earnings, with a 1% year-on-year drop to €40.1 billion. Looking ahead, Porsche is set to invest €800 million in rescaling efforts, enhancing its product portfolio, and advancing software and battery technologies.

Market Reaction: Following the announcement, Porsche's stock experienced a 4.11% drop at 9:47 am CET, signaling investor concerns over the company's restructuring plans.