Porche, a luxury sports car manufacturer owned by the Volkswagen Group, plans to cut 1,900 jobs in Germany by 2029.
The job reductions will primarily affect Porsche’s factories in Stuttgart-Zuffenhausen and Weissach.
ARD reports that the company will rely on voluntary resignations until 2030, as mandated by an employment stability agreement. The current workforce is 23,650.
Since last year, Porsche has gradually reduced its workforce by not renewing fixed-term contracts at its main production site in Zuffenhausen. The company aims to cut 2,000 temporary positions by the end of this year.
Porsche has faced challenges in its largest market, China, where sales plummeted 28% compared to the previous year. During the same period, the company’s operating profit margin also declined from 18% to 14%. In response to the slowing demand for electric vehicles, Porsche recently announced plans to bolster its lineup of internal combustion engines and hybrid vehicles this year.
