Volkswagen’s sweeping turnaround plan includes a new proposal to cut roughly 4,100 jobs at its sports‑car subsidiary Porsche, according to German business daily Handelsblatt. The cuts are intended to close an overhead gap of about €700 million ($804 million) and will be implemented in addition to existing layoff agreements.
Background on prior reductions
In July, Porsche management and labour representatives already agreed to an extra 5,000 layoffs on top of a previous 4,000‑person reduction, bringing total agreed cuts to about one‑fifth of the workforce by 2035. The latest proposal would further deepen that reduction.
Impact on the brand and the group
The move follows a profit warning tied to weak sales in China and a costly reversal of Porsche’s electric‑vehicle strategy. CEO Michael Leiters faces pressure to deliver a comeback plan as the brand’s financial performance falters.
Volkswagen has revised its full‑year margin target, now aiming for a modest 1 % profit margin, down from an earlier range of 4.0‑5.5 %.
Corporate governance notes
While Volkswagen’s supervisory board can recommend restructuring measures for Porsche, it cannot mandate them; the final decision rests with Porsche’s own management and works councils.
Both Volkswagen and Porsche declined to comment on the reported plan.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
