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

Volkswagen's comprehensive turnaround strategy includes a proposal for more than 4,000 additional job cuts at its Porsche sports car subsidiary, German business daily *Handelsblatt* reported Saturday, citing documents from the parent company's supervisory board.

Details of the Proposal

According to the report, files outlining VW's restructuring propose a reduction of "about 4,100 employees" at the Porsche brand. The move is intended to address an overhead shortfall estimated at approximately €700 million ($803.8 million).

*Handelsblatt* noted that these potential layoffs would be "in addition to existing agreements." Both Volkswagen and a spokesperson for Porsche declined to comment on the report. The source material notes that Volkswagen, as the parent company, can recommend such measures but cannot mandate them at its Porsche subsidiary.

Context of Cost-Cutting Measures

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The proposed cuts follow significant workforce reduction plans already in motion at the Stuttgart-based manufacturer. In July, Porsche management and labor representatives agreed to 5,000 layoffs, which came on top of 4,000 previously announced reductions. Together, these existing agreements amount to cutting roughly one in five jobs at the company by 2035.

This news comes just after Volkswagen revised its full-year margin target downward on Friday. The auto group now expects a margin of 1% at best, a significant reduction from its previous forecast of 4.0-5.5%. The company attributed the revision in large part to a writedown at Porsche.

Porsche's Performance Under Scrutiny

The luxury carmaker is facing mounting pressure to improve its financial performance. According to Reuters, Porsche CEO Michael Leiters is tasked with delivering a comeback strategy following a collapse in sales in the critical China market and a costly reversal of the brand's electric vehicle (EV) strategy.