Porsche said Tuesday it is undergoing a major restructuring in China to improve operating expense efficiency and remain agile in a highly competitive industry, following reports that it would cut about 30% of its workforce in the country. In a statement sent to The Paper on Wednesday, the company said it is “taking a series of measures that involve direct labor costs and indirect labor costs, including administrative expenses, travel expenses, and training costs … in the face of a complex market environment.” The news follows Porsche China Chief Executive Alexander Pollich’s announcement earlier this month of plans to reduce its dealership network from more than 150 dealers in January to 100 by the end of 2026, with sales expected to fall for a third consecutive year in 2024. Meanwhile, the German luxury carmaker aims to enhance its research and development capacities locally, recently hiring new engineers to develop “digital cockpit” infotainment systems and advanced driver-assistance systems. [TechNode reporting, The Paper, in Chinese]
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