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Mass Layoff at Porsche Will Impact 2 Thousand Employees: Manufacturer Is Shifting Focus from Electric Cars to Hybrid and Internal Combustion Engines.
Mass Layoff at Porsche: The sales pace of Porsche’s electric cars in the European market remains slow. Now focusing on hybrid and internal combustion engines, the decline in sales will result in a mass layoff at the company, which plans to cut 1,900 jobs in its factories in Germany by 2029. The affected units include the factory in Zuffenhausen, responsible for producing the electric model Taycan, and the research and development center in Weissach, both near Stuttgart. This information was reported by the German newspaper Die Welt on February 13, 2025.
Additionally, Porsche had already announced two other rounds of layoffs, impacting about 2,000 employees. These measures reflect the company’s strategy to expand its line of vehicles with internal combustion and hybrid engines in response to the stagnated demand for electric models, especially in China, where sales fell 28% in the last year. The company also plans to invest €800 million in the development of internal combustion and hybrid vehicles, which is expected to affect its profit margins, estimated between 10% and 12% for this year, below the long-term target of 20%.
Understand the Process of Mass Layoff at Porsche
By 2029, the German brand will reduce the number of jobs by 15% at facilities located in the cities of Zuffenhausen and Weissach. The mass layoff at Porsche, to focus on hybrid and internal combustion engines, affects units responsible for producing the Porsche Taycan sedan and the Macan EV crossover.
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The Porsche workforce has been reduced through voluntary measures, such as severance packages and early retirement. The manufacturer will also adopt a “restrictive approach” to new hiring.
According to the brand in an interview with Euronews, it is now a matter of defining the course at an early stage and closely analyzing the necessary adjustments to achieve greater success in the future. The mass layoff at Porsche also involves a series of other measures, including personnel costs.
The crisis at Porsche is part of a widespread contraction in the European automotive market. In addition to Porsche, Volkswagen plans to close factories and lay off employees, and Fiat and Renault are also producing more cars in Europe than they have been able to sell. The layoff at Porsche is the result of the difficult economic conditions in the country, according to the company itself.
Sales Declines at Porsche in 2024
The year 2024 was not promising for Porsche, as sales in China saw a 28% decline compared to the previous year. Globally, the decline was 3%, with the delivery of 310,718 vehicles, in the case of the electric Taycan, sales fell by 49%.
In addition to the mass layoff at Porsche, the sports car brand announced earlier this month that it would focus on hybrid and internal combustion engines, with planned investments of US$ 831 million. Profit margins are expected to be between 10% and 12%, below the long-term target of 20%.
Last year, Volkswagen, the company that controls Porsche, made an agreement with union leaders to reduce the mass layoff at Porsche. VW plans to cut up to 35 thousand jobs in the country by 2030, aiming to achieve savings of approximately 15 billion euros.
Investments in Hybrid and Internal Combustion Engines
On February 6, the company released financial data regarding expectations for the next year. The estimate is that the expansion of production and developments related to hybrid and internal combustion engines will total US$ 831 million, as previously mentioned.
It is important to remember that this amount is only for this year. This value also includes costs for “battery activities,” thus, it is not an exclusive expense for combustion.
Therefore, new hybrid models require batteries for specific platforms. According to the brand, the shift back to internal combustion is expected to cause profit margins to fall between 10% and 12%. The company is forecasting sales revenue of US$ 40 to US$ 41 billion. In the past, Porsche announced that it would continue the production of the V-8 engine for the Cayenne and the Panamera after 2030.
Source: Motor1
Sinto pelos demitidos de agora é do futuro.
Porsche Elétrico jamais para o público, inclusive o híbrido.
Dos motores a combustão o futuro é o híbrido porém para 50 anos mais. O híbrido requer infraestrutura. Ninguém quer um eletrodoméstico PORSCHE…..
Queremos um PORSCHE com a sinfonia de motto a combustão PORSCHE.
Carro elétrico,tem que ter um gerador a gasolina no porta malas para se garantir. Quando fora dos centros urbanos
Veículos elétricos , futuro totalmente incerto