Porsche shutters three units as new CEO makes first job cuts

PORSCHE AG is closing three of its non-car-making units, with chief executive officer Michael Leiters cutting headcount for the first time to counteract slumping sales in China and the cost of reversing its EV strategy.

The Volkswagen AG-owned carmaker plans to shut down its Cellforce battery business, an electric bike outfit and the Cetitec software subsidiary, it said on Friday. The decision affects more than 500 employees in Germany and Croatia.

The CEO is working to slim down the 911 maker as it grapples with waning deliveries in the US and China and a costly revamp of its overly ambitious electric-vehicle strategy.

Porsche agreed in April to sell its stake in the venture that owns the Bugatti supercar brand, and management has signalled that further divestments are possible.

Leiters in March acknowledged his intention to cut more jobs on top of some 3,900 positions due to be trimmed by the end of the decade.

Porsche currently employs roughly 40,000 people. The carmaker expects its investments to peak this year and then gradually decline amid lower research and development spending, including on EVs. BLOOMBERG