Porsche, the renowned German manufacturer of luxury and sports cars, is planning to eliminate 1,900 jobs over the next couple of years. This decision is driven by several factors: intense competition in the automobile industry, rising manufacturing costs, and a slowdown in market demand. Additionally, the transition to electric vehicles has not progressed as positively as anticipated, compounded by challenging geopolitical and economic conditions worldwide.
Porsche’s global workforce, which consists of 42,000 employees, will be reduced; however, media reports indicate that this will not involve compulsory redundancies. Job cuts began in 2024 when many temporary worker contracts were not renewed.
In December 2024, there were reports that Porsche was preparing to reduce its workforce in China by 30 percent, though the company denied these claims. In the first ten months of 2024, Porsche reportedly sold only about 44,000 vehicles in China, a 34 percent decline compared to the same period the previous year. Given that China is a leading global car market, this 29 percent drop in sales from January to September raised significant concerns. On a global scale, Porsche’s sales also decreased by seven percent, with just over 220,000 cars sold during that time.
In light of this disappointing performance, Porsche has decided to eliminate some dealerships in China to maintain long-term profitability and optimize its network of dealers within the country. The company now aims to focus on more profitable models, particularly those featuring combustion engines and plug-in hybrids.
