Porsche Could Face Another 4,000 Job Cuts: Report

Volkswagen's sweeping turnaround plan foresees more than 4,000 further job cuts at Porsche, German business daily Handelsblatt reported on Saturday, following a profit warning linked to problems at the sports car subsidiary.

Files documenting a recent agreement by Volkswagen's supervisory board to usher in the German auto group's largest restructuring yet propose a reduction of "about 4,100 employees" at the brand, addressing an overhead shortfall of some 700 million pounds ($803.8 million), according to Handelsblatt.

The newspaper said the cuts would be "in addition to existing agreements".

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In July, Porsche management and labour representatives agreed to an additional 5,000 layoffs on top of 4,000 determined earlier, bringing the scope of currently agreed job cuts at the Stuttgart-based 911 maker to around one in five by 2035.

Volkswagen declined to comment. A Porsche spokesperson declined to comment on the reported plans of Volkswagen's supervisory board.

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The parent company can only recommend, but not mandate, such measures at Porsche.

Volkswagen on Friday revised down its full-year margin target, now hoping for 1% at best rather than a previous range of 4.0-5.5%.

The revision was due in large part to a writedown at Porsche, where CEO Michael Leiters is under pressure to deliver a comeback strategy following a collapse in China sales and a costly reversal of the carmaker's EV strategy.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)