Porsche CEO Plans to Cut 40% of Managers for Company Survival
The company will raise the average price of its most expensive cars to €330,000 and maintain production of internal combustion engine vehicles, reports Frankfurter Allgemeine Zeitung.
Porsche CEO Michael Leiters announced a reduction of 40% of managerial positions and 25% of production staff. In total, around 9,000 employees will be laid off. This will allow the company to cut salary expenses by 10%.
Leiters also stated that the share of individual bonuses for top managers will increase from 10% to 30%. The company plans to raise the proportion of expensive cars in sales from one-third to nearly half. By 2030, the average price of the 10,000 most expensive Porsche cars is expected to rise from €270,000 to €330,000.
Porsche will not abandon the development of internal combustion engine vehicles and plans to release three new non-electric models. The share of such cars in sales will account for around 67%.
