Luxury car manufacturer Porsche announced on Thursday that it plans to cut around 1.900 jobs at two factories in its home country of Germany by 2029.
The layoffs are planned at Porsche’s main factory in Stuttgart and the development center in Weissach.
Porsche employees currently have job security guaranteed until the end of the decade, meaning the company will have to encourage them to leave voluntarily.
Management already began reducing the workforce last year, announcing that fixed-term contracts would no longer be extended.
At the beginning of the month, they unexpectedly announced the dismissal of Chief Financial Officer Lutz Meschke and Chief Sales Officer Detlev von Platen without stating the reasons. They also indicated that they would shift their focus back to vehicles with internal combustion engines.
The German luxury car manufacturer has been particularly affected by tensions in trade relations between China and the European Union (EU). Last fall, Brussels imposed additional tariffs on imports of electric cars in China, and Beijing signaled that it might respond by raising tariffs on gasoline sedans and SUVs with engines larger than 2.5 liters.
China accounts for a quarter of Porsche’s global sales.
In January, the company announced that last year it delivered 28% fewer cars to China than in 2023.
