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Volkswagen's Restructuring Plan to Cut Over 4,000 More Jobs at Porsche
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According to a report by Germany's Handelsblatt on Saturday, Volkswagen's comprehensive turnaround plan is expected to result in Porsche cutting more than 4,000 additional jobs. Documents indicate that the Volkswagen supervisory board recently approved an agreement aimed at driving the company's largest restructuring program to date. The documents propose that the Porsche brand will cut approximately 4,100 employees to close a gap of about €700 million in indirect costs. These layoffs will be on top of existing agreements. In July, Porsche management and labor representatives had already agreed to add 5,000 more job cuts to a previously determined 4,000 positions. On Friday, Volkswagen lowered its full-year profit margin target, now expecting it to be no higher than 1%, down from the previous range of 4.0% to 5.5%. This adjustment is primarily due to asset impairments at Porsche. Porsche CEO Michael Leiters is currently under pressure to present a recovery strategy to address the sharp decline in market sales and the high costs associated with automakers reversing their electric vehicle strategies.
Source report
Jin10 Data, September 19 — Germany's Handelsblatt reported on Saturday that Volkswagen's large-scale turnaround plan is expected to result in Porsche cutting more than 4,000 additional jobs.
According to documents cited by the report, the Volkswagen supervisory board recently approved an agreement aimed at driving the company's largest restructuring program to date. The documents propose that the Porsche brand will cut "approximately 4,100 employees" to close a gap of about €700 million in indirect costs. These layoffs will be "on top of existing agreements."
Previous Job Cuts at Porsche
- In July this year, Porsche management and labor representatives agreed to add 5,000 more job cuts to the previously determined 4,000 positions.
Volkswagen Lowers Profit Margin Forecast
On Friday, Volkswagen lowered its full-year profit margin target, now expecting it to be no higher than 1%, down from the previous range of 4.0% to 5.5%. This adjustment is primarily due to asset impairments at Porsche.
Pressure on Porsche CEO
Porsche CEO Michael Leiters is currently under pressure to present a recovery strategy to address:
- The sharp decline in market sales
- The high costs associated with automakers reversing their electric vehicle strategies
Source
金十数据Neutral / independent
Part of this Story
Porsche CEO Denies Additional 4,000 Job Cuts Amid Volkswagen Restructuring Reports