German business newspaper Handelsblatt reported on Saturday that a performance improvement plan at Volkswagen Group could include more than 4,000 job reductions at its subsidiary, Porsche AG. The report connects the potential cuts to a broader cost-saving initiative across the Volkswagen Group and recent financial pressures at the sports car manufacturer.
According to the Handelsblatt report, which cited unnamed company sources, the job reductions are part of discussions surrounding Volkswagen’s group-wide “Performance Program.” This initiative aims to increase efficiency and reduce costs across all its brands. The newspaper did not specify a timeline for the potential personnel changes.
As of this report, neither Volkswagen nor Porsche has issued an official statement confirming or denying the details published by Handelsblatt. Companies often do not comment on media speculation regarding internal planning.
The report follows a recent statement from Porsche regarding its financial outlook. On March 12, the company announced its forecast for a lower operating return on sales for 2024, projecting a range of 15% to 17%. This is a decrease from the 18% margin achieved in 2023.
In its annual report, Porsche officials attributed the adjusted forecast to several factors, including significant investments in brand development and the rollout of four new models this year: the Panamera, Macan, Taycan, and the 911. The company cited the costs associated with these product launches as a primary reason for the expected short-term decrease in profitability.
Volkswagen Group, Porsche’s parent company, has publicly stated its goal to implement significant cost-saving measures. In late 2023, Volkswagen brand CEO Thomas Schäfer announced a performance program targeting €10 billion (approximately $10.8 billion) in savings by 2026. The group-wide effort focuses on streamlining operations, reducing administrative costs, and improving efficiency to bolster its transition to electric vehicles and enhance overall competitiveness.
