BERLIN (Reuters) -Porsche CEO Oliver Blume has initiated negotiations on another round of cost-cutting measures to help the German carmaker cope with challenges in China and the U.S. tariff dispute, according to a letter seen by Reuters on Friday.
“In the second half of 2025, employer and employee representatives will negotiate a second structural package to secure the company’s long-term performance,” according to an excerpt of the letter sent to the company’s leadership.
“Our business model, which has served us well for many decades, no longer works in its current form,” Blume wrote.
Blume, who had already announced additional savings in March when presenting the carmaker’s 2024 results, did not provide any details about the possible savings measures in the letter.
Porsche, which at its 2022 stock market debut was valued higher than parent company Volkswagen AG, has fallen from grace since, struggling in particular with low sales in China.
Porsche is also facing difficulties in the U.S., where import duties of 27.5% on vehicles have been in place since April. Porsche does not have production facilities in the U.S. but imports its cars exclusively from Europe.
At the beginning of the year, Porsche had announced that it would cut 1,900 of around 40,000 jobs by 2029, after 2,000 temporary employees did not have their contracts renewed.
(Reporting by Christina Amann, Writing by Miranda Murray, Editing by Friederike Heine)
