Porsche to Cut 200 Jobs at Battery Unit Amid EV Demand Slump
Porsche is set to cut jobs at its battery-making subsidiary, Cellforce Group. Around 200 employees, out of a total of 286, will be affected. The layoffs are expected to start on Monday, following official notifications to staff. This news comes after Porsche warned employees about business model challenges in July and announced 1,900 job cuts in February. However, the company has not commented on the Cellforce Group layoffs.
The job cuts at Cellforce Group are a result of Porsche abandoning plans to increase battery production due to slower-than-expected demand for electric vehicles. This decision highlights the challenges faced by European firms in competing with Chinese battery producers like CATL and BYD, who dominate the market. In March, Sweden's Northvolt, Europe's highest-profile battery maker, filed for bankruptcy but was later acquired by US rival Lyten. The US company has taken over Northvolt's assets, including its sites in Sweden and Germany.
The layoffs at Cellforce Group underscore the complexities of the battery market and the challenges faced by European automakers in the shift towards electric vehicles. Porsche's job cuts and the struggles of European battery producers like Northvolt highlight the need for innovative solutions and competitive strategies in this key battleground for carmakers.
