Porsche Is Set To Cut 1900 Jobs, Low EV Demand Blamed

Job cuts have sadly become a common headline in the automotive industry in recent years, and now there’s another to add to that growing list. Porsche has announced that it’s planning to cut 1900 jobs by 2029.

In a statement released to media, the manufacturer has stated it is aiming to reduce its workforce by 15 per cent at its Stuttgart-Zuffenhausen and Weissach sites.

Currently, Porsche builds the 911 and 718 – which will soon be replaced with an EV version – in Stuttgart, while Weissach is responsible for car development as well as final work on GT-series models.

According to Euro News, the cuts are in addition to 1500 fixed-term contracts ending last year and another 500 of those soon to expire.

Porsche has cited stagnating demand for electric vehicles as a large catalyst for the job cuts as well as “challenging geopolitical and economic conditions.” It added, "Now is the time to set the course at an early stage and take a close look at the adjustments we need to make in order to remain successful in the future."

It follows in the wake of the company announcing fresh investment in internal combustion engines and more hybrids last week, stating. Last year, it scrapped plans for 80 per cent of vehicle sales to be EVs by 2030.

Currently, Porsche offers the Taycan and Macan in electric-only guises. When the new 718 arrives, that’ll make three – although at this stage it’s unclear if any of those models will be retrofitted with internal combustion engines as part of Porsche’s new plans. Reports have suggested an ICE Macan may be on the cards, but those are unconfirmed.

Employees at both of Porsche’s sites have been encouraged to take early retirement packages or accept a voluntary severance package, suggesting a decision on enforced cuts has yet to be taken.

It joins Ford with recent job cuts, which recently announced plans to axe 800 UK jobs and 2900 positions in Germany. Similarly to Porsche, Ford also attributed those to weak demand for its EVs and “unprecedented competitive, regulatory, and economic headwinds.”