Future Package Porsche Management Tightens Austerity Measures

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At the car manufacturer, management is increasing pressure and referring to the "changed conditions." "Significant cost savings" are on the table.

Porsche intends to tighten its austerity measures and is demanding significant concessions from employees. The Volkswagen subsidiary is seeking further savings, particularly at the main plant in Zuffenhausen and the development center in Weissach, as reported by the Stuttgarter Nachrichten and Stuttgarter Zeitung (Germany Newspaper). Among other things, the outsourcing of entire business units and vehicles is being considered.

The planned measures include the elimination of one-time payments and anniversary benefits. Cuts are also expected in pension plans.

Specifically, a "reduction in salaried staff" or an "external relocation of service scopes" are mentioned, as well as a "reduction in the number of apprentices and conditional employment guarantees." Furthermore, there are plans for "adjustments" to remote working and working hours, as well as an "increase in flexibility," according to the newspapers referring to a list available to them.

A company spokesperson said the automotive industry is facing immense challenges, and competitiveness will determine Porsche's future. "We need to tackle this in all areas. Significant cost optimizations are absolutely necessary due to the changed framework conditions." Discussions about this are being held with employee representatives as part of a second future package—"still confidentially."

Works Council Wants An Extension of Employment Security

The company has repeatedly emphasized in the past that it wants to discuss reducing personnel costs with employee representatives. Neither the company nor the general works council wished to disclose the targeted savings volume.

The chairman of the general works council, Ibrahim Aslan, told the "Stuttgarter Nachrichten" and "Stuttgarter Zeitung" upon request: "The general works council and IG Metall are in talks with the management board about a future package to position Porsche and its workforce well for the future." Currently, they are in the information phase, and only after that will negotiations begin.

Next week, long-scheduled employee meetings will take place in Zuffenhausen and Weissach, Germany. The works council's position is clear: "We need job security at least until 2035 and expect a clear commitment from the management board to our German Porsche locations." According to earlier information, the current job security is valid until mid-2030 for approximately 23,000 employees at the main plant in Zuffenhausen, the development center in Weissach, and several smaller locations.

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1,900 Jobs Are to Be Cut By 2029

It was only in February that an initial savings package was announced, under which 1,900 jobs would be cut by 2029—socially acceptable due to employment security. In July, the outgoing CEO Oliver Blume internally announced another round of savings.

Given the multibillion-euro burdens from the strategic shift to once again focus on building combustion engines, Porsche management expects significantly lower profits this year. The costs for the corporate restructuring amount to 3.6 billion US dollars, as Porsche announced in mid-September.