"Where Africa Comes to Stay Informed."
US Edition
"Where Africa Comes to Stay Informed."
More than 4,000 additional positions at Porsche are earmarked for elimination under Volkswagen's broad turnaround program, according to a Saturday report in the German business daily Handelsblatt. The report follows a profit warning rooted in difficulties at the sports car unit.
Documents covering a recent Volkswagen supervisory board decision — one that sets in motion the biggest restructuring the group has attempted — call for cutting “about 4,100 employees” at the brand, Handelsblatt reported. The move is aimed at closing an overhead gap of roughly €700 million ($803.8 million). Those reductions, the paper said, would come “in addition to existing agreements.”
Porsche has been shedding staff for some time. In July, the company's management and worker representatives signed off on 5,000 further layoffs, stacked on top of 4,000 agreed earlier. Taken together, the reductions already committed would remove roughly one in five jobs at the Stuttgart-based maker of the 911 by 2035.
Volkswagen declined to comment. A Porsche spokesperson also would not address what Volkswagen's supervisory board is reported to be planning. Any such measure would in any case be a recommendation rather than an instruction — the parent company cannot impose it on Porsche.
Volkswagen cut its full-year margin guidance on Friday, abandoning a range of 4.0% to 5.5% in favor of 1% at the very best. A writedown at Porsche accounted for most of that downgrade. Chief executive Michael Leiters is now under pressure to produce a recovery plan, with sales in China having collapsed and an expensive retreat from the carmaker's electric vehicle strategy still being absorbed.
Comments
0