The German Porsche management is discussing with the Board of Works a tightening of the austerity policy

The management of the German sports car company Porsche and the Board of Works held preliminary talks regarding tightening the company’s austerity policy.

A company spokeswoman explained that the two sides had already taken immediate measures at the beginning of the year to reduce the cost of workers during the current year, adding that it was announced at the time that talks had begun regarding approving a package of future measures.

The company added: “The goal of this package is for Porsche to become more efficient in the medium and long term,” noting that the talks will revolve around preparing different approaches, with the clear goal of making Porsche capable of facing future developments. According to information from the German News Agency (DPA), the talks may also include discussing the layoffs of more employees, and discussing the job security procedure, which is valid until the end of July 2030.

The staff council wants to extend this measure, while management is believed to be considering ending it.

There is no official information about the content of the talks or their timetable, and a Porsche spokeswoman simply said: “We will conduct the talks respectfully, confidentially and confidentially, and we will announce the results at the appropriate time.”

According to previous statements, the job security procedure applies to about 23,000 employees at the main factory in Zuffenhausen, and at the development center in Weissach, in addition to a number of other small branches. If this procedure ends, the company will once again be able to implement separations related to operating conditions at these sites, with the exception of the Porsche plant in Leipzig, for which separate negotiations are underway.

Job security procedures at companies usually last for several years, and these procedures exclude layoffs for operational reasons, a common practice for decades in the German automobile industry.

Porsche last extended this measure in 2020. Last spring, the company announced its intention to eliminate 1,900 jobs in the Stuttgart region by 2029 in a manner that takes into account the social dimension. Porsche also announced its intention not to extend temporary contracts.

It is noteworthy that Porsche, which is majority owned by the Volkswagen Group, has been going through a difficult situation for a long time.

The company’s CEO, Oliver Blume, attributed this primarily to what he called the “crisis of framework conditions,” noting that the luxury products market in China suddenly collapsed in a short period, in addition to the situation in the United States and the slow process of transition towards electric mobility technology.

Porsche sales during the first nine months of this year reached 212,500 cars, a decline of approximately 6% compared to the same period last year.

Porsche announced last month that the total costs of restructuring the company would reach 3.1 billion euros. During this year, a number of new members were appointed to the Board of Directors, and there is speculation about the possible departure of the CEO, Oliver Blume.

• The talks may also include discussing the layoffs of more employees, and discussing the job security measure, which is valid until the end of July 2030.