1 hr ago
Porsche Faces 4,100 More Potential Cuts Amid Volkswagen Restructuring
Porsche may cut about 4,100 more jobs as Volkswagen tries to reduce costs.
These possible cuts would be added to thousands of positions already covered by earlier agreements.
In July, Porsche management and labor representatives announced 5,000 additional layoffs on top of 4,000 previously agreed.
A report said the new plan is meant to address a large gap in Porsche’s overhead costs.
Volkswagen and Porsche did not confirm or deny the reported plan.
Volkswagen can recommend changes at Porsche but cannot force the company to make them.
Volkswagen is also expecting much lower profit margins this year.
Its new target is no more than 1%, compared with an earlier target of 4.0% to 5.5%.
About 4,100 additional Porsche positions are reportedly at risk under a Volkswagen restructuring plan.
The reported cuts would come on top of existing agreements involving about 9,000 positions.
Handelsblatt said the plan addresses an overhead shortfall of approximately €700 million.
Volkswagen and Porsche declined to comment on the reported supervisory-board plans.
Volkswagen lowered its full-year margin target to a maximum of 1%, from 4.0%–5.5% previously.
- Who
- Porsche and its parent company, Volkswagen, are involved; Porsche employees could be affected.
- What
- About 4,100 additional Porsche positions are reportedly at risk in a Volkswagen restructuring plan.
- Where
- The reported reductions concern Porsche's operations within the German auto group.
- When
- The report appeared on Saturday; earlier layoff agreements were announced in July.
- Why
- The plan reportedly aims to address an overhead shortfall of about €700 million amid Volkswagen's turnaround effort.
Key facts
- Reported additional positions at risk
- About 4,100
- Previously announced positions
- About 9,000, comprising 4,000 previously agreed cuts and 5,000 additional layoffs announced in July
- Reported overhead shortfall
- Approximately €700 million
- New Volkswagen margin target
- 1% at best
- Previous margin target
- 4.0%–5.5%
- Company responses
- Volkswagen and Porsche declined to comment
- Authority over Porsche
- Volkswagen can recommend, but not mandate, measures at Porsche
Quotes
Handelsblatt
German business daily that reported on the proposed Volkswagen restructuring
“Files documenting a recent agreement by Volkswagen's supervisory board to usher in the German auto group's largest restructuring yet propose reducing 'about 4,100 employees' at the brand, addressing an overhead shortfall of some €700 million ($803.8 million)”
livemint.com
Sources
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