Volkswagen restructuring plan aims to promote further layoffs of about 4,100 employees at Porsche

According to a report from Germany's Handelsblatt on Saturday, Volkswagen's large-scale turnaround plan is expected to see Porsche further cut over 4,000 jobs. Relevant documents show that Volkswagen's supervisory board recently approved an agreement aimed at pushing forward Volkswagen’s largest restructuring plan to date. The documents state that the Porsche brand will cut “around 4,100 employees” to fill an indirect cost gap of about 700 million euros. These layoffs will “be in addition to existing agreements.” In July this year, Porsche management and labor representatives agreed to further add 5,000 job cuts on top of the previously established 4,000 positions. On Friday, Volkswagen lowered its full-year profit margin target, now expecting a maximum of only 1%, compared to the previous target range of 4.0% to 5.5%. This adjustment is mainly due to asset impairments at Porsche. Porsche CEO Michael Leiters is now facing pressure to come up with a recovery strategy to address the sharp decline in market sales and the high costs resulting from automakers reversing their electric vehicle strategies.