Abstract:
According to reports, a large-scale turnaround plan by Volkswagen is expected to further cut more than 4,000 jobs at Porsche after Volkswagen issued a profit warning due to problems at its sports car subsidiary Porsche.
The group plans to cut "approximately 4,100 employees" at the Porsche brand to address an operating cost gap of approximately 700 million euros (approximately $803.8 million), according to a document documenting a recent agreement reached by Volkswagen's supervisory board.
The layoffs will be carried out "outside of existing agreements," the newspaper said.
In July this year, Porsche management reached an agreement with labor representatives to lay off an additional 5,000 people on top of the previously determined layoff plan of 4,000 people; this means that by 2035, the scale of layoffs will reach about one-fifth of its total employees.
Volkswagen and Porsche could not immediately be reached for comment. As the parent company, Volkswagen can only propose such measures against Porsche, but has no power to enforce them.
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