Porsche, the German sports car manufacturer that is part of the Volkswagen Group, has announced plans to reduce its workforce by approximately 3,900 people by 2029. The press service noted that the decision is related to the slowdown in the transition to electric cars and the desire to stay afloat amid competition. At the same time, Porsche intends to expand its model lineup in parallel: in addition to new hybrid modifications, it plans to increase the production of cars with conventional internal combustion engines. According to management, this strategy will allow for the gradual building of a more balanced and stable business model.
Swedish automaker Volvo has also announced its intention to cut about 3,000 employees worldwide. The main cuts will affect office staff, and Sweden will feel it the most: there are plans to eliminate approximately 1,200 staff positions and about 1,000 positions for external consultants. In total, this is about 15% of all office employees of the company worldwide. Volvo plans to spend 1.5 billion Swedish kronor on restructuring, which is equivalent to approximately 157.6 million US dollars.
Both companies emphasize that such measures are forced and are designed to help adapt to rapid market changes: intensifying rivalry in the electric vehicle segment, unstable demand, and rising costs for creating new technologies. The course towards a "hybrid future" and streamlining costs, according to management, will allow Porsche and Volvo to strengthen their positions and maintain long-term development stability.
