Porsche could face another 4,000 job cuts, Handelsblatt reports

BERLIN, Sept 19 - German business daily Handelsblatt reported on Saturday that Volkswagen's restructuring plan may lead to more than 4,000 additional job cuts at Porsche, following a profit warning linked to issues at the sports car subsidiary. The proposed reduction of around 4,100 employees aims to address an overhead shortfall of approximately €700 million.

The cuts would be in addition to existing agreements, with Porsche management and labor representatives having already agreed to 5,000 more layoffs in July, bringing the total agreed job cuts to about one in five by 2035. Volkswagen declined to comment on the reported plans, while a Porsche spokesperson also declined to comment on the potential measures recommended but not mandated by the parent company.

Volkswagen revised down its full-year margin target to a best case of 1% instead of the previous range of 4.0-5.5%, due largely to a writedown at Porsche. CEO Michael Leiters is facing pressure to deliver a turnaround strategy following a slump in China sales and a reversal of the carmaker's EV strategy.