German luxury sports carmaker Porsche, a subsidiary of the Volkswagen Group, said Monday it would cut 5,000 jobs by 2035 as part of a strategic realignment to boost competitiveness.
The maker of the 911 sports car has seen profits collapse due to plunging sales in China, where home-made electric vehicles now dominate, as well as US tariffs and a costly decision to hit the brakes on its troubled electric transition.
The new plan includes the “socially responsible reduction of a further 5,000 jobs by 2035, largely through natural attrition, demographic effects, the expansion of the special partial retirement programme and voluntary severance agreements,” the company said.
With job cuts already announced last year, the firm therefore plans to reduce its workforce of over 30,000 by 8,900 people.
Announcing what it called its “future package”, the carmaker also said it would invest a cumulative of 2.1 billion euros ($2.4 billion)
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