While media reports say that Porsche, the German luxury car maker is preparing to trim its workforce in China by 30 per cent, the company itself has reportedly denied the same.
About a week ago, there were reports of Porsche planning to eliminate some of its regular as well as contract staff amid slow sales and dipping demand for luxury cars. As per information received from inside the company by a Chinese media firm, the employees who are being laid off will receive severance pay along with six months’ salary.
The company had reportedly sold only about 44,000 vehicles in China in the first ten months of 2024, which was 34 per cent less than its sales during the same period the year before.
Considering that China is known to be the global leader in terms of car market, the fact that Porsche saw a 29 per cent slump in sales during January to September in the country has been concerning. Globally too Porsche’s sales were down by seven per cent, having sold just over 2.2 lakh cars during the period.
Following this weak performance, the company had decided to eliminate some dealerships in China with a view to maintaining profitability in the long run and optimising the network of dealers in the country.
It is expected that the total number of dealers in China will be about 100 in a year’s time.
