Leipzig: Porsche cuts temporary worker positions due to slump in sales
Leipzig. The Porsche engine is running less smoothly than in recent years. Because the company is selling fewer vehicles, production in Leipzig must now be reduced as well.
As management announced at a staff meeting on Thursday, shift operations will be adjusted to meet requirements.
Specifically, the body shop for the off-road SUV Macan will switch to single-shift operation after the summer company holiday. The assembly, paint shop, and axle assembly departments will operate in two shifts starting next November. Production has currently been carried out in three shifts.
As a result of these measures, Porsche intends to “significantly” reduce the number of temporary workers, according to a management newsletter available to this editorial team.
"We regret this because we greatly value their work. The change also means that the core workforce teams will be restructured and responsibilities will change," it continues.
The permanent workforce will not be affected by the job cuts. "However, given the challenging economic and geopolitical situation for Porsche AG, a structural adjustment is also unavoidable at Porsche Leipzig GmbH."
The Leipzig management doesn't go into details in the newsletter. However, the fact is that Porsche announced several months ago that it would continue its cost-cutting program and eliminate around 1,900 jobs in Germany by 2029. So far, it's been stated that Leipzig will not be affected. Porsche is relying on voluntary participation anyway, as its employees are guaranteed employment until 2030.
Speaking to shareholders at the company's annual general meeting, Porsche CEO Oliver Blume commented on the current situation: "We already faced massive headwinds last year. Now we are experiencing a violent storm."
Trade conflicts, unstable supply chains and the slow transition to electromobility drove up costs for the DAX-listed company.
"Our market in China has virtually collapsed," admitted Blume, who, in addition to being CEO of Porsche, also heads the Volkswagen Group. The US import tariffs on cars, which have been in effect since April, have also impacted the VW subsidiary's business. Since Porsche doesn't have its own production facilities in the United States, vehicles must be imported entirely.
Currently, 4,600 employees are directly employed by Porsche Leipzig. This includes temporary workers. The company is keeping their numbers private. According to IG Metall, there are over 1,000 at the plant.
"The news of reducing shifts and laying off temporary workers is more than bitter," says Leipzig-based IG Metall head Steffen Reißig. "After all, the affected colleagues have made a significant contribution to the company's success in recent years and are now facing the unknown."
At the same time, the union representative looks to the future. "Porsche is planning a new SUV model and has given the Leipzig site a good chance of being able to build it. To ensure capacity utilization and jobs in the region, we need clarity quickly on what will happen next," says Steffen Reißig.
Leipzig has a good chance of becoming a production location for this new model, Porsche CEO Blume recently said.
A new model series with combustion and hybrid drive is planned for the SUV segment. The new, off-road-capable vehicle is scheduled to hit the market by the end of the decade.
The reason for this is the phasing out of production of the Macan with a gasoline engine, which is built exclusively in Leipzig, and the concern that the plant may soon no longer be operating at full capacity.
Currently, the sporty SUVs with electric and combustion engines are still being built on the same line. However, the new Macan is now only available with an electric drive. The gasoline-powered Macan, which continues to be in high demand, is scheduled to be discontinued in 2026. It can no longer be ordered in Europe due to new regulations regarding cybersecurity in vehicles.
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