Layoff Announcement: Porsche significantly reduces staff in Cellforce division
Porsche to Lay Off Around 200 Employees at Battery Subsidiary, Cellforce
Porsche, the renowned sports car manufacturer, has announced plans to shut down most of its battery subsidiary, Cellforce, and lay off approximately 200 employees. The decision comes as a result of weak demand for electric vehicles (EVs), especially in China, and challenging market conditions.
The layoffs are expected to occur at Cellforce's facilities in Swabia, Germany. A mass layoff notice has been filed with the Reutlingen Employment Agency, and the layoff process is set to commence following the filing.
The affected employees work at Porsche's battery subsidiary, Cellforce. Production volumes at Cellforce have been insufficient to achieve the economies of scale necessary for cost-effective battery manufacturing, leading Porsche to abandon its strategy of in-house mass battery production.
Instead, Cellforce will focus solely on research and development (R&D), with a small team remaining operational at a research and development unit in Kirchentellinsfurt, Swabia. Some displaced employees may be offered positions at Volkswagen Group’s PowerCo battery unit, reflecting internal group coordination.
The key reasons for this strategic realignment include declining demand in the fully electric luxury segment, market difficulties in China, unfavourable economic conditions, and the inability to scale production to the originally ambitious targets.
This move reflects broader industry challenges for European automakers trying to compete with Chinese battery manufacturers and scale competitive battery production domestically. It signals Porsche’s pragmatic shift from vertical integration in battery manufacturing towards reliance on partnerships and supply chain collaboration.
[1] BBC News [2] Reuters [3] Autocar [5] CNN Business
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