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October 21, 2004

GERMANY: Porsche cutting jobs through attrition

Porsche is cutting jobs at its main holding company through attrition, according to reports.

By bcusack

Porsche is cutting jobs at its main holding company through attrition, according to reports.

“Vacancies in production are not being filled again, since we have increased the output per worker considerably,” chief executive Wendelin Wiedeking said in a newspaper interview, according to Reuters.

The Porsche CEO aims to strategically position the company for a permanently weak dollar by achieving annual productivity increases of 6%, streamlining labour costs and boosting sales in emerging markets.

“Our entire hedging measures serve only one goal: to buy us time to prepare for the situation when currencies are against us,” Wiedeking reportedly said. Porsche’s current hedging contracts will expire in 2007.

“Even without hedging, we would still earn good money,” Wiedeking reportedly added.

A spokesman for Porsche later told Reuters that the company had not begun to cut jobs in production as a response to the strong euro but that attrition has been going on for several years there. Overall employment at the group has been growing, he said.

“We will also continue to further hedge ourselves against a further fall in the dollar (after 2007),” the spokesman added, according to Reuters.

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