Tough times are hitting car makers. Companies like Porsche and Volvo are cutting thousands of jobs.
To stay ahead, car makers need to change. They’re facing tough competition and consumers who want more. Porsche and Volvo are following other companies like Volkswagen, which plans to cut over 35,000 jobs in Germany by 2030.
Porsche and Volvo are changing their plans
Porsche is shifting its strategy due to a slower-than-expected switch to electric cars. The company will offer more combustion-engine and hybrid models. It’s also “realigning” its battery work. To cut costs, Porsche will cut around 3,900 jobs by 2029.
The world has changed […] we’re in a tough storm.
Said Oliver Blue, Porsche’s CEO, “we accept the challenge; we have a plan; we’re acting; and we’re not wasting time”.
On the other hand, Volvo is cutting around 3,000 jobs worldwide. The company’s CEO, Håkan Samuelsson, said “the actions announced today were tough decisions, but they’re important steps as we build a stronger Volvo”.
As we build a stronger and more resilient Volvo Cars.
The job cuts will mainly affect office-based positions in Sweden, which is about 15% of Volvo’s global office workforce. Around 1,000 consultants and 1,200 employees in Sweden are included in the cuts. The layoffs are expected to happen in the fall, with restructuring costs totaling up to €138.5 million.
These changes show how tough the market is for car makers. They need to adapt to succeed.