Talks about cost-cutting round: Is Porsche's job guarantee at risk? - Porsche Faces Job Cuts as EV Shift and China Struggles Mount
Porsche is grappling with a 'crisis of the framework conditions', with a struggling Chinese business and the costly shift towards electric vehicles. The company has seen a drop in profits and vehicle sales, leading to discussions about job cuts and the future of employment guarantees.
Porsche has sold around 212,500 vehicles in the first nine months, a six percent decrease from last year. The company expects significantly lower profits this year due to the multi-billion euro burden of its shift towards combustion engines. Porsche has already agreed to reduce 1,900 jobs in the Stuttgart region by 2029 and not extend temporary contracts.
The company is currently negotiating with the works council about intensifying cost-saving measures. These discussions include the possible expiration of employment guarantee agreements, which cover about 23,000 employees and prevent dismissals for operational reasons. The guarantees are valid until the end of July 2030. While the works council aims to extend these guarantees, management is considering letting them expire, which could lead to layoffs unless an agreement is reached. Special arrangements are being negotiated separately for the Leipzig plant.
Porsche is facing a challenging period with declining demand in China and high investments in e-mobility. The company is in talks to secure its future through further cost-cutting measures, which may include job cuts and the expiration of employment guarantees. The outcome of these negotiations will significantly impact the company's workforce.
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