Overview

• Porsche will reduce its workforce by 1,900 employees at its Zuffenhausen and Weissach facilities in Germany by 2029, representing a 15% cut at these sites.
• The job cuts will occur through voluntary measures such as early retirement and severance packages, with no forced layoffs planned until at least 2030 under a job security agreement.
• The company attributes the reductions to slower-than-expected EV adoption, a 3% decline in global deliveries in 2024, and a 28% drop in sales in China, its key market.
• Porsche plans to shift focus toward internal combustion and hybrid powertrains to stabilize profit margins, which are projected to fall to 10%-12% in 2025, down from its long-term goal of 20%.
• The automaker faces increasing competition from Chinese EV makers and challenges in developing next-generation electric models, including delays in the all-electric 718 Boxster and the battery-powered Cayenne SUV.