Porsche warns workers of cost-cuts amid 'serious' situation
Any further steps would come on top of the 1,900 job cuts the company announced in February while Volkswagen, Porsche's parent group, is already in the process of cutting 35,000 jobs by 2030.
"Our business model, which sustained us for many decades, no longer works in its current form," Porsche management said in a letter to employees, excerpts of which were shared with AFP.
"Our operating conditions have deteriorated dramatically in a short period of time," the letter read.
Negotiations are expected in the second half of the year "to assure the long-term future of the company", the letter added without going into specifics of possible measures.
Fierce competition in China from domestic players, tariffs imposed by US President Donald Trump and the dollar weakening versus the euro were all weighing on Porsche, bosses said.
The cost of ramping up electric vehicle production amid tepid demand was also hurting the company, they added.
"The situation remains serious and the sector is evolving very dynamically," the letter said.
Porsche in April slashed its profit and sales forecasts for the year, citing "continued challenging market conditions" in China.
Porsche's vehicle deliveries in China fell 28 per cent in the first half of the year and six per cent worldwide.
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Such policies risk economic inefficiency, trade wars and shortchange consumers. - The Straits Times/ANN
