Porsche cuts production in Leipzig: Thousands of jobs are at risk!

Porsche cuts production in Leipzig: Thousands of jobs are at risk!

Porsche is facing challenging times as the company has to significantly reduce production at its German locations due to the current economic situation. The plant in Leipzig, which produces the Panamera and Macan models, is particularly affected. Sales of these vehicles are clearly weakening, making the decision to cut production necessary. How Mercury According to reports, those responsible in Leipzig are planning a massive reduction in production capacity.

Porsche had already announced in advance that it would cut a total of 1,900 jobs at its headquarters in Stuttgart-Zuffenhausen and in neighboring Weissach by 2029. These measures appear to be driven primarily by the ongoing economic difficulties and changing market demand. Despite these cuts, the core workforce will remain unaffected by measures for the time being. In order to support employees, the aim is to achieve socially acceptable downsizing, which excludes redundancies for operational reasons, such as Time reported.

Production and personnel measures

Various adjustments are planned at the Leipzig plant, which currently employs around 4,600 people. From summer onwards, body production for the Macan will be switched to one shift. In the fall, assembly and painting work will be reduced from three to two shifts. The permanent workforce will initially be spared, while temporary workers will be laid off to a greater extent.

Porsche sees these adjustments as part of a comprehensive realignment program. In addition to the measures already taken, contracts of fixed-term employees whose terms end in 2024 will also not be extended. This represents a clear change in human resources policy and demonstrates the company's efforts to control costs.

Strategic realignment

Porsche is also planning to focus more on vehicles with combustion engines again, despite a previous focus on electromobility. CFO Lutz Meschke and sales director Detlev von Platen, both of whom have been criticized in the past, are to be replaced, which suggests a lengthy internal reassessment. The exclusion of redundancies for operational reasons and the desire to secure employment until 2030 are part of the measures that Porsche would like to take to support the workforce in these difficult times.

Porsche expects additional costs of up to 800 million euros for 2024. The company is forced to find a balance between the further development of its models and economic realities. Analysts and experts are following the developments with concern as they could influence the company's future course.