Report Says Volkswagen Eyes 4,100 More Porsche Job Cuts

Documents from Volkswagen's supervisory board propose about 4,100 additional job cuts at Porsche to address an estimated €700 million shortfall in overhead savings, according to Handelsblatt. Those reductions would come on top of agreements already covering 9,000 positions—5,000 that Porsche management and labour representatives agreed to eliminate in July, plus 4,000 from an earlier deal—and could leave roughly one in five Porsche jobs affected by 2035. On Friday Volkswagen lowered its full-year operating-margin forecast to as little as 1% from a prior range of 4.0% to 5.5%, a downgrade linked to a writedown tied to Porsche. Porsche is contending with falling sales in China and costs from reversing aspects of its electric-vehicle strategy, with CEO Michael Leiters tasked with a turnaround plan. Volkswagen may recommend the cuts but cannot impose them because Porsche operates as a separate company; both firms declined to comment. Whether Porsche adopts the proposed cuts remains unresolved.