By Rachel More
BERLIN, July 22 (Reuters) – Porsche could double the scope of its redundancy programme with plans to cut another 5,000 jobs, German media reported on Wednesday, as the German carmaker’s supervisory board met to discuss restructuring measures.
The figure was reported by Manager Magazin, citing unnamed sources. Bild newspaper reported that CEO Michael Leiters planned to cut between 5,000 and 6,000 jobs by 2035.
A spokesperson for the company declined to comment.
Margins at Porsche, long one of the Volkswagen Group’s most profitable businesses, have crashed in recent years from comfortable double-digit percentages to only 1.1% last year.
The slide was driven by falling sales in the once-lucrative Chinese market, tariff woes and a stalled electrification strategy that cost the carmaker billions of euros.
Having already agreed 3,900 redundancies, labour representatives and management have been negotiating a second package of measures, expected to be announced in the coming week.
Parent Volkswagen has warned that 100,000 jobs could be cut across the group in the company’s battle to become cost-competitive. Four plants in Germany are also threatened with closure in the coming years.
(Reporting by Rachel MoreEditing by David Goodman)
Comments