Porsche faces another 4,000 job cuts

Citing the German business daily Handelsblatt, The Express Tribune reported that Volkswagen's supervisory board documents envisage about 4,100 job reductions at Porsche. The cuts would sit within the group's largest restructuring to date and follow a profit warning linked to difficulties at the sports car unit.

The files, which record a recent agreement by the supervisory board, aim to close an overhead gap of 700 million (about $803.8 million). Handelsblatt said the reductions would be on top of agreements already in place. In July, Porsche's management and labour side signed off on 5,000 more job losses, layered over 4,000 decided earlier, which would bring agreed cuts close to one in five by 2035.

A Porsche spokesperson declined to comment on the reported plans. Volkswagen can suggest such measures at Porsche but lacks the authority to impose them. On Friday, the group lowered its full-year margin target, which now stands at 1% at best against a previous range of 4.0 to 5.5 per cent.