Porsche wants to tighten its austerity measures and is demanding extensive concessions from employees. The VolkswagenIn discussions about a new future package, the subsidiary is aiming for further savings, primarily in the main plant in Zuffenhausen and in the development center in Weissach, as the “Stuttgarter Nachrichten” and the “Stuttgarter Zeitung” report. Among other things, the outsourcing of entire parts of the company and vehicles is being considered. The Porsche share reacted positively to the media reports and was recently up significantly at more than 4 percent.
At a works council meeting in Wolfsburg on Wednesday, Volkswagen boss Oliver Blume (57) announced that to further push forward the austerity measures within the entire group. According to information from the company, the group can only make money with vehicles in the future if costs are further optimized, said Blume.
At Porsche, the cancellation of one-off payments and anniversary benefits is planned. Retirement provisions should also be cut. Specifically, a “reduction in the number of employees” or an “external relocation of services” were mentioned, as well as a “reduction in the number of trainees and a conditional guarantee of employment”. There will also be “adjustments” to home offices and working hours as well as an “increase in flexibility,” as the newspapers reported, citing a list available to them.
A company spokesman said the automotive industry is facing immense challenges and competitiveness will determine Porsche’s future. “We have to tackle this in all areas. Given the changed framework conditions, significant cost optimization is absolutely necessary.” This is being discussed with the employee side as part of a second future package – “still confidential”.
The works council wants to extend employment security
The company had repeatedly emphasized in the past that it wanted to talk to employee representatives about reducing personnel costs. Neither the company nor the general works council wanted to provide information about the amount of savings targeted.
The chairman of the general works council, Ibrahim Aslan, told the “Stuttgarter Nachrichten” and “Stuttgarter Zeitung” when asked: “General works council and IG Metall “We are in discussions with the board about a future package to prepare Porsche and its workforce well for the future.” We are currently in the information phase and only then will negotiations begin.
Next week, long-scheduled company meetings will take place in Zuffenhausen and Weissach. The works council’s position is clear: “We need employment security at least until 2035 and expect a clear commitment from the board of directors to our German Porsche locations.”
According to previous information, the current job security applies until mid-2030 for around 23,000 employees at the main plant in Zuffenhausen, in the development center in Weissach and at several smaller locations. If the measure were to expire, operational dismissals would be possible. In total, Porsche employs around 42,000 people.
1,900 jobs are expected to be eliminated by 2029
A first austerity package was announced in February As a result, around 1,900 jobs will be cut by 2029 – socially acceptable because of job security. In July, outgoing CEO Blume announced another round of cuts internally.
In view of the billions of euros in costs caused by the shift in strategy to increasingly build combustion engines again, the Porsche management is expecting significantly less profit this year. The costs for the company restructuring add up to 3.1 billion euros, as Porsche announced in mid-September.