In a statement, the company said around 1,900 jobs will go by 2029, mainly through retirement and voluntary agreements. A further 2,000 jobs will go as short term contracts ended. Porsche has around 42,600 employees.
It was badly hit by a 28 per cent fall in sales in China where like other manufacturers it faces stiffer competition from Chinese car firms like BYD and Geely. China’s challenging economic situation has also seen prices of all cars fall as companies chases customers.
Electrified cars accounted for 27 per cent of its sales, with full EVs making up 12.7 per cent. Porsche has said it believes the share of EV’s will rise to more than one in five (22%) in 2025.
It said it will spend more to improve its petrol engines as well as plug-in hybrids and battery electric vehicles to give its customers the widest choice of cars to drive well into the 2030s.
The news resulted Porsche’s shares suffering their worst day ever last month since it first listed in 2022, after explaining to shareholders that its profit margins would be dented further because the pivot back to petrol engine and hybrid models would cost 800m euro (£670m).
Adding to its problems is the prospect of a tariff trade war. Porsche finance chief Jochen Breckner said he was having “sleepless nights” worrying about the tariff impact.
Porsche is not the only luxury sports car maker experiencing problems. Stellantis-owned Maserati has said it is cancelling plans for its latest electric version of its MC20 sports car because of expected poor demand, the struggling carmaker said.
The MC 20 Folgore had been due to debut this year. The decision was taken because of the lack of commercial prospects, with few vehicles expected to be sold in the coming years according to a spokesperson.
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