Porsche to Cut Workforce by 25% as It Targets 9%-12% Automotive Net Cash Flow Margin

Deep News
Oct 07

Porsche has announced a significant restructuring plan aimed at strengthening its financial performance and operational efficiency over the medium and long term.

According to materials released during its Capital Markets Day presentation, the company has set a medium-term target of a 10%-15% group operating return on sales, alongside a 9%-12% net cash flow margin for its automotive business.

Over the long term, Porsche is aiming for a 15% group operating return on sales and a 12% net cash flow margin in its automotive division.

The company has also outlined a medium-term revenue target range of 41 billion euros to 45 billion euros, with cash generation expected to achieve disproportionate growth relative to revenue.

Through lean operations and cost reduction measures, Porsche plans to lower its break-even point to below 200,000 vehicles.

As part of this initiative, the company intends to reduce management positions by 40% over the medium term.

The overall workforce is set to be reduced by 25%, with a strategic goal of achieving a 30% reduction.

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