Porsche, once a frontrunner in the transition to electric vehicles, is now facing major setbacks due to declining demand.
The German sports car giant has announced plans to cut 1,900 jobs by 2029 as sales of its Taycan EV plummet.
Slower EV Transition Hits Porsche Hard
The company, known for its luxury performance vehicles, had high hopes for its electric future.
But in 2024, Porsche sold just 20,836 units of the Taycan. This is a 49% drop from the previous year.
To combat financial strain, Porsche did not renew contracts for 1,500 temporary workers in 2024. Now, another 500 contracts are set to expire, and the company plans additional job reductions over the next four years.
“This alone is not enough,” a Porsche spokesperson admitted, as cited by Mobilsiden. “The management board and works council have therefore decided on a program that will cut a further 1,900 jobs across the company in the coming years.”
The 15% workforce reduction will primarily affect Porsche’s main plants in Stuttgart-Zuffenhausen and Weissach. However, the company cannot enforce layoffs due to an existing job security agreement that lasts until 2030.
What’s Next for Porsche?
Despite the setbacks, Porsche is still betting on its electric future.
The automaker recently introduced an electric version of the Macan SUV and has plans for an EV version of the Cayenne—both models that could help revive Porsche’s electric car sales.
Global EV adoption has been slower than anticipated, forcing major automakers to rethink their strategies. Porsche’s struggles mirror a broader industry trend, with companies like Tesla, Ford, and Volkswagen also scaling back production in response to weaker-than-expected demand.
