Volkswagen’s supervisory board has approved an agreement advancing the group’s
largest restructuring; Porsche is slated to cut roughly 4,100 employees to plug
an estimated €700m indirect-cost shortfall, with the reductions stacking on top
of existing accords. In July Porsche management and labour representatives
agreed to add 5,000 cuts to a previously agreed 4,000. Volkswagen on Friday
trimmed its full-year profit-margin target to at most 1% from 4.0–5.5%, citing a
Porsche asset impairment. Porsche CEO Michael Leiters faces pressure to present
a turnaround plan amid a sharp sales decline and higher costs tied to the
maker’s reversal of its EV strategy.
