Porsche cuts employee bonus nearly in half amid profit slump - Handelsblatt

Published 19/03/2025, 16:52
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Investing.com -- Sports car manufacturer Porsche has decided to significantly reduce the employee bonus following a slump in profits. The Executive Board and Works Council have agreed on a voluntary special payment of up to €5,250 ($5,900) for 2024, according to Handelsblatt, citing a company spokesperson announment. This marks a substantial decrease from the €9,690 ($10,900) bonus given in 2023.

This cut in employee bonus is a part of a broader earnings program initiated by the company. The Volkswagen (ETR:VOWG_p) subsidiary is aiming to reduce costs through this program. The spokesperson stated that due to Porsche’s challenging business situation, management bonus payments will also be significantly lower.

The revised bonus will reportedly be disbursed with the April salary. All employees at German locations who are permanently employed by Porsche AG and its subsidiaries, including those at the Porsche plant in Leipzig, are set to receive this special payment. In total, more than 28,000 employees will be impacted by this decision.

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