[News] Major Carmakers Porsche and Nissan Cut Jobs Amid Market Slowdown

Major auto companies have announced layoffs. According to a report from Reuters, citing sources, Porsche AG has decided to cut an additional 1,900 jobs across the company in the next four years after determining that a previously implemented program was insufficient.

As noted by the report, Porsche aims to reduce workforce at its major sites in southwestern Germany—Stuttgart-Zuffenhausen and Weissach—by 15% by 2029.

However, as the report indicates, due to a location safeguarding agreement, Porsche employees are guaranteed job security until 2030, meaning that layoffs driven by operational motives will not take place before then.

The report also mentions that in 2024, Porsche announced it would stop renewing temporary job contracts, with 1,500 such contracts already affected so far. Additionally, another 500 contracts are set to expire in the coming months without renewal.

As noted by the report, Porsche is currently facing challenges stemming from the delayed ramp-up of EVs as well as geopolitical and economic factors.

Nissan: Job Cuts as Part of Turnaround Efforts

Meanwhile, according to another report from ijiwei, citing press release from Nissan, Nissan plans to cut 2,500 indirect employees globally. The company also plans to reduce its senior management positions by 20%, as its press release indicates.

As stated by its press release, Nissan plans to reduce costs by approximately JPY 400 billion (USD 2.6 billion) in the 2026 fiscal year. In terms of restructuring its production base, Nissan plans to reduce its global production capacity by 20% by fiscal year 2026.

Nissan plans to close a factory in Thailand in the first quarter of the next fiscal year, followed by the shutdown of two more factories later, as its press release notes.

After concluding its merger discussions with Honda, Nissan announced on Thursday a significant decline in third-quarter earnings and revised its full-year forecast downward for the third time, according to ijiwei.

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(Photo credit: Porsche)