The German luxury car manufacturer Porsche AG declared its decision to eliminate 1,900 positions throughout the next four years to achieve fuller workforce reductions beyond their original workforce adjustment measures. The company operates under pressure from multiple factors namely its delayed EV market adoption rates coupled with economic instability worldwide.  

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The Porsche representative made an official announcement on Thursday about reducing 15% of the workforce at its main production locations Stuttgart-Zuffenhausen and Weissach by 2029. The location safeguarding agreement protects Porsche against forcing employees to leave until 2030.  

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The company started its workforce reduction scheme in 2024 through refusing to renew contracts for 1,500 workers on temporary contracts. Company executives state that besides the ongoing expiration of 500 contracts there will be insufficient cuts to address the situation. The Executive Board together with the Works Council decided to create a program that aims to reduce approximately 1,900 positions throughout the entire company during the upcoming years.  

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The planned workforce reduction at Porsche will proceed through staff leaving naturally while using population shifts and limited hiring and vacancy replacements.  

Porsche declared its strong financial position despite announcing cuts to employment. However the company needs to face various industry challenges. According to the spokesperson the company faces two major obstacles that include the delayed electromobility market expansion and the difficulties stemming from geopolitical and economic realities.  

The company which Volkswagen AG mostly controls as owner faces similar challenges to other automakers because of delayed electric vehicle adoption and market uncertainty.  

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A local paper named Stuttgarter Zeitung introduced the news about additional job reduction at TLS.