Porsche could face another major round of job cuts as Volkswagen pushes ahead with a sweeping restructuring plan aimed at reducing costs across the group.
According to German business daily Handelsblatt, documents linked to a recent Volkswagen supervisory board agreement propose cutting around 4,100 additional jobs at Porsche to address an overhead shortfall of about 700 million pounds.
The reported reductions would come on top of job cuts that have already been agreed.
In July, Porsche management and labour representatives reportedly agreed to eliminate another 5,000 positions in addition to 4,000 cuts announced earlier. Together, those reductions amount to roughly one-fifth of the Stuttgart-based sports car maker’s workforce by 2035.
Volkswagen declined to comment on the report, while a Porsche spokesperson also refused to comment on the supervisory board’s reported plans.
Volkswagen itself has come under increasing financial pressure. The company recently lowered its full-year operating margin forecast to a maximum of 1%, sharply below its earlier projection of 4% to 5.5%.
A major factor behind the downgrade was a writedown at Porsche, which is struggling with weak sales in China and the financial impact of changes to its electric vehicle strategy.
Porsche CEO Michael Leiters is now under pressure to deliver a turnaround plan as the luxury carmaker tries to restore profitability and regain momentum in key global markets.
The latest report suggests that deeper cost-cutting measures could still be ahead as Volkswagen and Porsche work to stabilise their businesses.
