Porsche has confirmed plans tocut 500jobsas part of a wider restructuring. The job losses come as the iconic Germancar brandshuts down three subsidiaries, including battery developers Cellforce Group GmbH, Porsche eBike Performance GmbH and specialised software company Cetitec GmbH.
Bosses said the closures, which come after Porsche announced it would sell its stakes in Bigatti Rimac and Rimac Group, to allow thecompanyto "focus on its core business". The entire firm has seen a decline in profits over recent times, with car sales dropping by 15% and their overall operating profit falling by 22% in the first quarter this year. Porsche announced plans to close down several branches as part of a new, slimmer operational model last Friday (May 8).
As reported byThe Sun, Michael Leiters, Porsche CEO, said: "Porsche must refocus on its core business. This is an indispensable foundation for a successful strategic realignment."
He added: "This forces us to make painful cuts – including our subsidiaries." A timeline for the planned closures has not yet been confirmed but the changes are set to impact employees across Germany and Croatia.
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As well as the restructuring, Porsche has also put more focus on combustion engines and hybrids rather than electric vehicles. Bosses feel these products are more aligned with their customers' needs.
The closure of Cellforce Group, which will impact 50 jobs, comes as the automotive sector pushes towards battery independence while shutting Porsche eBike Performance, where 350 employers are set to be affected, shows a drop in confidence around premium mobility products. Meanwhile, Ceitec's closure, impacting around 100 workers, reflects pressure on digital operations across the industry.
Porsche previously held a 45% stake in Bigatti Rimac as well as a majority holding in Rimac Group. Mate Rimac, chief executive of Bugatti Rimac, has thanked the company for its support in the joint venture.
Source: Daily Express :: World Feed
