by Volvo and Porsche cut thousands of jobs
Two well-known automakers, Volvo and Porsche, have announced large-scale layoffs. In total, the companies plan to cut around 6,900 employees worldwide. Porsche explains these steps by the slow transition to electric vehicles, forcing them to focus on traditional engines and hybrids. Both companies also mention challenging conditions related to trade wars and the electrification process.
Porsche is launching a cost optimization program that involves cutting 3,900 jobs by 2029. The company’s CEO, Oliver Blume, stated:
“The world has changed. We are weathering a severe storm. But we are accepting the challenge. We have a plan, and we are acting.”
Volvo, in turn, will reduce 3,000 employees, including office workers in Sweden.
Market reaction and future prospects
The automotive industry is going through a difficult period, and many manufacturers are forced to adapt to new conditions. The layoffs at Volvo and Porsche are just part of a global trend. For example, last year, another German auto giant announced plans to cut over 35,000 jobs by 2030. These steps indicate that companies are trying to remain competitive in a world where demand for electric vehicles is growing slower than expected.
Both companies emphasize the need to reduce costs and increase efficiency. Volvo, in particular, plans to save money through structural changes, while Porsche aims to do so by revising its product lineup. These decisions, though painful, could be the key to long-term stability. However, they also raise questions about how the industry will adapt to new technological challenges.
