- Volvo and Porsche have announced plans to cut approximately 6,900 jobs globally.
- Porsche blames slow EV adoption for pushing them to offer more ICE-powered models.
- Both companies cited a challenging environment that includes a trade war and electrification.
European automakers are feeling the squeeze as they brace for an uncertain future, with workforce reductions becoming a common theme. Last year, Volkswagen set the tone by revealing plans to trim more than 35,000 jobs in Germany by 2030.
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Porsche and Volvo are now following suit as both companies have announced cuts due to “challenges.” Starting with the former, Porsche has announced a strategic realignment plan, which includes “adapted product and corporate planning” thanks to the “significantly longer transition phase” to electric mobility.
More: VW Confirms More Than 35,000 Job Cuts In Germany, Golf Production Moving To Mexico
Because of slower than expected adoption, Porsche will offer additional vehicles with combustion engines and plug-in hybrid powertrains. The company also announced a “realignment of battery activities.”
More notably, Porsche has launched an “extensive cost and rescaling program.” This will result in around 3,900 job cuts by 2029. The company is also planning to have discussions with their works council on a “structural package” that is “intended to make Porsche even more efficient in the medium and long term.”
Porsche CEO Dr Oliver Blume didn’t mince words as he said, “The world has changed” and “We are experiencing a fierce storm.” However, he said “We accept the challenge. We have a plan. We are acting. And we’re not wasting any time.”
Volvo Is Cutting 3,000 Jobs Globally
Over in Sweden, Volvo revealed a number of cuts as part of their previously announced “cost and cash action plan.” The latest effort targets redundancies and is slated to see the elimination of around 3,000 jobs globally. The automaker said these will “primarily affect office-based positions in Sweden and will represent around 15 percent of the total office-based workforce globally.”
The automaker went on to explain the figure includes approximately 1,000 consultants as well as 1,200 employees in Sweden. These eliminations are slated to occur this fall and the company expects the latest restructuring costs to total up to SEK 1.5 billion ($157.6 / £116.2 / €138.5 million).
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Volvo CEO Håkan Samuelsson said, “The actions announced today have been difficult decisions, but they are important steps as we build a stronger and even more resilient Volvo Cars.” He added, “The automotive industry is in the middle of a challenging period. To address this, we must improve our cash flow generation and structurally lower our costs.”
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