Porsche to cut another 5,000 jobs
Porsche Announces Second Wave of Job Cuts and Restructuring
Details of the Job Reductions
BERLIN, July 27 (Reuters) - German carmaker Porsche will cut another 5,000 jobs by 2035 under a second package of restructuring measures agreed between management and labour representatives, both sides said in a joint statement on Monday.
Background and Context
The measures at Porsche, a Volkswagen subsidiary that has gone from profit driver to crisis case in recent years, comes ahead of a broader showdown over drastic cuts proposed across the group, which is battling high costs, stiff competition and tariff woes.
Previous and Current Redundancies
The latest Porsche redundancies follow a first package of 3,900 job cuts and another 500 announced by new CEO Michael Leiters earlier this year. They will be carried out in a socially responsible manner, the statement said.
Additional Agreements and Investments
The deal also includes an extension of plant location guarantees by five years until 2035 and €2.1 billion ($2.39 billion) in investments in its Zuffenhausen and Weissach factories, it added.
Financial Details
($1 = 0.8785 euros)
Reporting Credits
(Reporting by Rachel More, Editing by Miranda Murray)
