Porsche axes board position as part of restructuring
Porsche Announces Executive Board Restructuring
BERLIN, May 7 (Reuters) - German sports car maker Porsche is cutting the number of executive board members to seven from eight as part of a strategic realignment of the company under new CEO Michael Leiters, it said on Thursday.
Changes to Board Structure
Under the restructuring, the research and development division will incorporate Car IT from July 1. Sajjad Khan, who oversaw software and infotainment as the board member for Car IT, will no longer serve on the board and will not be replaced, Porsche said.
Impact on Car IT Division
Both Porsche and its majority-owner Volkswagen are under pressure to cut costs. Porsche is grappling with collapsing sales in China, tariff costs and missteps in its EV transition, which have weighed on profitability.
Statements from Leadership
"Porsche is in a challenging phase of transformation," supervisory board chairman Wolfgang Porsche said in a statement announcing the move.
Future Role of Sajjad Khan
Khan "will remain available to Porsche in the future", the company said in its statement.
Deputy board chairman Michael Steiner will remain head of the R&D division in its expanded form.
(Reporting by Rachel More; Editing by Susan Fenton)
