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

Volkswagen's restructuring plan for Porsche could lead to an additional 4,000 job cuts, according to German business daily Handelsblatt. The newspaper cited a recent agreement by Volkswagen's supervisory board to address the sports car subsidiary's financial woes, which include a profit warning and a recent writedown. The total number of employees potentially affected by the cuts stands at approximately 4,100, beyond the previously announced 5,000 layoffs in July.

These additional reductions aim to offset an overhead shortfall of around €700 million, bringing the overall job cuts at Porsche to nearly one in five by 2035. While Porsche management and labor representatives had previously agreed to the 5,000 layoffs, the supervisory board can only recommend such measures, not mandate them. Volkswagen recently revised its full-year margin target to 1%, reflecting the challenges posed by Porsche's declining sales in China and the company's misguided EV strategy.