Porsche Announces 1,900 Job Cuts Amidst Declining Sales and High Production Costs

Porsche is facing a period of economic uncertainty and is restructuring its operations to adapt to the changing automotive landscape. The company has confirmed plans to cut an additional 1,900 jobs at its headquarters in Stuttgart and its research center in Weissach by 2029. 

The announcement was made following the company's falling sales, particularly in China, escalating production costs in Germany, and a slower-than-expected transition to electric vehicles (EVs).

Porsche, once one of the most profitable companies within the Volkswagen Group, has seen its global car deliveries drop by 3% in 2024, with a particularly concerning 28% decline in sales in China. 

The drop in sales comes at a time when the automotive industry is undergoing a fundamental shift toward EVs, with the German automaker itself having faced delays in ramping up its electrification efforts. However, despite the industry's push towards electrification, Porsche recently announced that it would refocus on its core strengths, which are combustion engines and plug-in hybrid vehicles (PHEVs).

Credit: Road and Track

This announcement comes after Porsche already downsized last year, opting not to renew the contracts of 1,500 temporary staff in Germany. Despite these measures, the company has determined that more extensive action is necessary. The new round of job cuts is expected to impact employees across various sectors, including administration, research and development, and production.

Andreas Haffner, Porsche’s Human Resources Chief, explained that the company is facing “many challenges to overcome,” pointing to the delayed roll-out of electromobility, global economic difficulties, and geopolitical uncertainty. Despite the scale of the layoffs, Haffner emphasized that there would be no forced redundancies, and the company is committed to handling the restructuring process in a way that respects its employees.


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