Porsche stated that the scale of job cuts could eventually reach up to 30% of its total workforce, with some reductions previously announced. The company's profit margin last year was only 1.1%, compared to 18% two years ago.
Porsche CEO Michael Reith announced the restructuring plan during a capital markets day event. The core of this strategy is 'selling fewer cars, but at higher prices'.
Porsche plans to increase the average price of its high-end models by about 20% in the medium term, while reducing the number of models and configuration variants by approximately 20%.
According to reports, Porsche's declining performance was one of the main reasons Volkswagen Group announced last month a provision of 6 billion euros for impairments. Additionally, the U.S. tariffs imposed last year brought about an additional cost of approximately 700 million euros to the Volkswagen Group. (rc)