Porsche issues statement as it axes 500 jobs | World | News
Porsche confirms plans 500 layoffs as part of wider restructuring. The job losses come as the iconic German car brand closes three subsidiaries, including battery developers Cellforce Group GmbH, Porsche eBike Performance GmbH and custom software company Cetitec GmbH.
Bosses said the closures, which came after Porsche announced it would sell its shares in Bigatti Rimac and Rimac Group, allowed the company to “focus on its core business”. The company as a whole has recently experienced a decline in profits; car sales fell 15% in the first quarter of this year and overall operating profit fell 22%. Porsche announced last Friday (May 8) that it plans to close many branches as part of a new, slimmer operational model.
As reported by SunPorsche CEO Michael Leiters said: “Porsche must refocus on its core business. This is an indispensable basis for a successful strategic realignment.”
He added: “This is forcing us to make painful cuts, including to our subsidiaries.” The timeline for the planned closures has not yet been confirmed, but the changes are expected to affect employees in Germany and Croatia.
Along with the restructuring, Porsche has focused more on combustion engines and hybrids rather than electric vehicles. Owners think these products are better suited to their customers’ needs.
The closure of Cellforce Group, which will affect 50 people, comes as the automotive industry moves towards battery independence and Porsche eBike Performance, with 350 employers expected to be affected, shows a waning reliance on premium mobility products. Meanwhile, the closure of Ceitec, which affected around 100 workers, reflects the pressure on digital operations in the industry.
Porsche previously held a 45% stake in Bigatti Rimac and a majority stake in the Rimac Group. Mate Rimac, CEO of Bugatti Rimac, thanked the company for its support of the joint venture.
