Porsche: bonus for employees almost halved

Following the slump in profits at sports car manufacturer Porsche, the bonus for employees will also be significantly lower. The Executive Board and Works Council have agreed on a voluntary special payment of up to 5,250 euros gross for 2024, according to a company spokeswoman. The bonus has therefore almost halved: in 2023, it was still up to EUR 9,690.

The reduction is therefore part of a company-wide earnings program. Among other things, the Volkswagen subsidiary's costs are to be reduced. "In view of the challenging business situation at Porsche, bonus payments to management will also be significantly lower," it said.

The employee bonus will reportedly be paid out with the April salary. All employees at German locations who are permanently employed by Porsche AG and its subsidiaries will receive the special payment. This also includes employees at the Porsche plant in Leipzig. In total, this concerns more than 28,000 employees.

Porsche Board Member for Human Resources Andreas Haffner said: "The voluntary special payment is lower than in previous years. However, it still honors our strong team performance in a very challenging environment." The bonus has been in place at Porsche since 1997, and the Executive Board and Works Council called for donations in connection with the bonus.

Profit slump and savings program

The manufacturer of sports and off-road vehicles from Stuttgart-Zuffenhausen reported a significant drop in profits just last week. Group net profit fell by 30.3 percent year-on-year to around 3.6 billion euros. The reasons for this included poor business in China and high costs for the renewal of several model series. Sales fell by 1.1 per cent to just over 40 billion euros.

The management around Porsche CEO Oliver Blume and the works council had already agreed on a cost-cutting program: Around 1,900 jobs are to be cut in the Stuttgart region by 2029. In addition, 2,000 fixed-term employee contracts were or will not be extended. A cap on the employee bonus was also announced at the time.