Porsche Plans to Cut 1,900 Jobs by 2029 Amid EV Sales Slowdown

According to international media reports on February 13, Porsche, a major consumer of lithium batteries, plans to reduce its workforce by 1,900 employees in Germany by 2029, representing approximately 15% of its total staff. The decision comes as the company grapples with declining electric vehicle sales.

 

A Porsche spokesperson emphasized that the reduction would not involve forced layoffs. Instead, the company plans to achieve the workforce reduction through voluntary measures, including early retirement packages and severance compensation. New hiring will be "strictly limited."

 

While Porsche maintains a relatively strong market position, the company faces several challenges, including delays in its electric vehicle initiatives and complex geopolitical and economic conditions.

 

The transition to new energy vehicles has presented significant challenges for Porsche. The company recently announced that it expects profit margins of 10-12% in 2025, substantially below its long-term target of 20%. In response, Porsche plans to introduce new internal combustion engine (ICE) and plug-in hybrid electric vehicle (PHEV) models.

 source: Porsche

The company has warned that developing new vehicle models and other battery-related projects will require an additional €800 million investment by 2025.

 

Recent data shows Porsche's global sales declined by 3% in 2024, primarily due to a significant downturn in the Chinese market, which has been one of its most profitable regions in recent years.

 

Reports indicate that Porsche began workforce reductions in 2024, choosing not to renew 1,500 fixed-term contracts upon expiration, with an additional 500 contracts approaching termination.

 

source: Porsche

Company Background: 

Founded in 1931, Porsche is a prestigious luxury automotive brand under Volkswagen Group, headquartered in Stuttgart, Germany. The company's flagship models include the 911, 718 (Boxster and Cayman), Panamera, Cayenne, and Macan.

 

In September 2022, Porsche conducted its initial public offering (IPO) in Europe, valued at $85 billion—the largest IPO in European history. The company listed on the Frankfurt Stock Exchange on September 29, 2022.

 

Volkswagen Group maintains majority ownership of Porsche, which employs approximately 42,000 people globally, with 23,650 employees in and around Stuttgart.

 
Battery Supply Chain:

Porsche's electric vehicle battery suppliers include LG Chem, CATL, and Samsung SDI, who provide high-performance battery systems for models like the Taycan. The company has also acquired a majority stake in Varta's V4Drive Battery GmbH division and participated in its financial restructuring, demonstrating its commitment to strengthening its battery supply chain.

 

For specific models, such as the new Macan EV, CATL supplies the 100kWh battery pack, enabling a maximum WLTP urban range exceeding 780 kilometers.