Porsche AG To Cut 3,900 Jobs, Warns Of Challenging Market Conditions

Luxury sports car manufacturer Porsche AG is implementing major organizational changes to boost efficiency and secure long-term financial success.

The company has introduced an extensive restructuring initiative aimed at cutting approximately 1,900 positions by 2029.

This reduction will be achieved through natural employee turnover, demographic shifts, and a stringent hiring approach.

The company will also offer social measures, including voluntary partial retirement options and severance agreements. Additionally, 2,000 roles will be eliminated as fixed-term contracts expire, with further restructuring efforts anticipated later in the year.

As part of this restructuring, Jochen Breckner has assumed leadership of Finance and IT, while Matthias Becker took over Sales and Marketing in February, following the mutual departures of Lutz Meschke and Detlev von Platen from their positions at the company.

Also Read: Southwest Airlines Introduces Paid Baggage system; Cuts Guidance

In 2025, Porsche expects to intensify the Road to 20 performance program, particularly focusing on cost reduction to improve profitability.

The program's goal is to reach an operating return on sales of over 20 percent. Starting in 2025, Porsche AG intends to allocate an extra 800 million euros (~$873.69 million) to enhance its product portfolio, as well as software and battery development.

However, these investments are expected to have a negative impact on the company's financial performance for this year. The company highlighted ongoing geopolitical uncertainties and increased competition, particularly in China, as key factors affecting the 2025 outlook.

“We are consciously setting out on a comprehensive recalibration and sustainably strengthening Porsche for the future,” said Breckner.

The company anticipates an operating return of 10% – 12% in 2025, lower than the 2024 results, primarily due to reduced vehicle sales and elevated costs.

Also Read:

• Kohl’s Anticipates Sales And Profit Dip In 2025, Slashes Dividend By 75%

Photo by Maqqerso on Shutterstock.