Porsche Faces Potential for 4,100 Additional Job Cuts, Handelsblatt Reports

Volkswagen's extensive turnaround plan reportedly includes a proposal for more than 4,000 additional job cuts at its subsidiary Porsche, according to a report from German business daily *Handelsblatt*. The measure is aimed at addressing an overhead shortfall of approximately €700 million ($803.8 million) at the luxury sports car manufacturer.

Details of the Proposal

Documents from a recent Volkswagen supervisory board meeting reportedly outline a reduction of "about 4,100 employees" at the Porsche brand. *Handelsblatt* noted that these potential layoffs would be "in addition to existing agreements."

Porsche's management and labor representatives have already agreed to significant workforce reductions. The currently planned cuts, which are to be implemented by 2035, include:

• An initial 4,000 layoffs
• An additional 5,000 layoffs agreed upon in July

If the newly reported cuts are approved, the total number of job reductions at the Stuttgart-based automaker would exceed 13,000, representing roughly one-fifth of its workforce.

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Context and Company Response

The potential for deeper cuts at Porsche follows a recent profit warning from its parent company. Volkswagen revised its full-year margin target down to 1% at best, a significant reduction from its previous forecast of 4.0-5.5%. The company attributed the revision largely to a writedown at Porsche.

Both Volkswagen and a Porsche spokesperson declined to comment on the *Handelsblatt* report. It is important to note that Volkswagen's supervisory board can only recommend such measures; it cannot mandate them at the Porsche brand.

Pressure on Porsche

The cost-cutting initiatives come as Porsche navigates significant operational challenges. The brand's CEO, Michael Leiters, is reportedly under pressure to deliver a comeback strategy following a collapse in sales in the key China market and a costly reversal of its electric vehicle (EV) strategy.