MHP Ludwigsburg: Germany's locations affected by radical job cuts!

MHP Ludwigsburg: Germany's locations affected by radical job cuts!

MHP Ludwigsburg, a subsidiary of Porsche AG, is planning significant job cuts at its German locations. As the Stuttgart News Report, all German locations are affected, including Ludwigsburg, Frankfurt am Main, Berlin, Düsseldorf, Munich, Nuremberg, Wolfsburg, Ingolstadt and Dresden. As part of these measures, the workforce will be reduced by a “low three-digit number of employees”, which amounts to around 5% of the total of around 3,600 employees in Germany.

It is important to mention that initially these are not layoffs, but rather severance offers. MHP explains that it sees “no future employment opportunities” for the affected employees. As part of the new corporate strategy “2030 Turbo”, which is intended to respond to changes in the market, MHP plans to hire new consultants with “future-relevant skills and competencies”. However, despite these new hires, the total number of employees will decrease.

Background to the job cuts

MHP's strategy is viewed critically against the backdrop of a tense market situation in the automotive industry. The increasing difficulties in electromobility and the general crisis are also putting a strain on the company. Loud BW24 MHP feels the effects of these developments particularly strongly, as it works with a focus on customers from the automotive industry.

Porsche, which has owned MHP since August 2023, is also examining the sale of the subsidiary and is planning a possible drastic reduction of up to 3,900 jobs by 2029. This could result in a significant restructuring for the group, which could further reinforce MHP and the workforce reductions that have already been initiated.

What employees can expect

Severance payments are planned for the affected employees, while dismissals for operational reasons are excluded. MHP emphasizes that the workforce reductions should be designed in a socially responsible manner. An all-hands meeting will be held on July 1, 2025, where the plans will be officially announced.

The situation is challenging the company, which currently employs around 4,800 people worldwide. The focus is clearly on responding to market changes and the coming change in corporate structure could bring both significant opportunities and significant risks.