Porsche is planning to reduce its workforce by approximately 3,900 positions in an effort to improve profitability.
The German luxury carmaker will reduce its workforce by around 1,900 positions by 2029, leveraging demographic changes, natural turnover, and a restrictive hiring policy.
Additionally, a further 2,000 positions will be phased out through the expiration of fixed-term employment contracts.
The company is also implementing voluntary measures such as partial retirement programmes and severance agreements.
The move comes as the company reported Group sales revenue of €40.1bn for 2024 financial year, ending 31 December. The sales revenue was decreased a 1% below the previous year’s €40.5bn.
This stability was largely attributed to a higher proportion of customisations and improved price positioning of newly launched products.
However, Group operating profit declined to €5.6bn, down from €7.3bn in the previous year, while the Group operating return on sales dropped from 18.0% to 14.1%.
The 2024 financial year’s earnings were heavily influenced by the challenging economic conditions and a comprehensive renewal of the product range, the company said.
The automotive net cashflow stood at €3.7bn, close to the €4.0bn from 2023, even after accounting for €250m in pension plan-related cash outflows.
Porsche’s total number of cars delivered in 2024 fell slightly to 310,718, compared to 320,221 in the previous year. The decline was primarily due to continued market challenges in China.
The Cayenne remained the company’s best-selling model, with 102,889 units delivered, followed by the Macan (82,795) and the 911 (50,941).
The company also noted that 27% of the new vehicles delivered were electrified, with expectations for this segment to grow significantly in the near future.
Recently, Porsche Automobil Holding SE (Porsche SE) anticipated a loss of €20bn for the fiscal year 2024 due to non-cash impairment charges.
In preparation for 2025, Porsche is set to invest an additional €800m in rescaling efforts, advancements in software and battery technology, and product portfolio enhancements.
Despite anticipating persistent market difficulties and heightened competition, particularly in China, Porsche forecasts a Group operating return on sales in the range of 10-12% for the 2025 financial year, with projected sales revenues around €39-40bn.
“Porsche plans 3,900 job cuts to boost profitability” was originally created and published by Just Auto, a GlobalData owned brand.Yahoo Finance
