Porsche may see 4,100 more layoffs under Volkswagen's turnaround plan: Report

Volkswagen's sweeping turnaround plan could lead to more than 4,000 additional job cuts at its sports car subsidiary Porsche, German business daily Handelsblatt reported on Saturday. The report comes after Volkswagen lowered its full-year profit margin target following a write-down linked to problems at Porsche, as reported by Reuters.

Documents related to a recent agreement by Volkswagen's supervisory board to implement the German auto group's biggest restructuring plan propose a reduction of about 4,100 employees at Porsche, Handelsblatt reported.

The proposed cuts are aimed at addressing an overhead shortfall of around 700 million euros ($803.8 million), according to the newspaper. Handelsblatt said the reductions would be "in addition to existing agreements".

Volkswagen declined to comment on the report, while a Porsche spokesperson also declined to comment on the reported plans of Volkswagen's supervisory board.

In July, Porsche management and labour representatives agreed to an additional 5,000 layoffs, on top of 4,000 job cuts determined earlier.

This would bring the number of currently agreed job cuts at the Stuttgart-based sports car maker to around one in five employees by 2035, according to the Reuters report.

Volkswagen, Porsche's parent company, can recommend such measures but cannot mandate them at the subsidiary.

Volkswagen on Friday revised down its full-year margin target, saying it now expected a margin of 1% at best, compared with its previous target range of 4.0% to 5.5%.

The revision was largely linked to a write-down at Porsche. The sports car brand's CEO, Michael Leiters, is under pressure to deliver a comeback strategy following a collapse in sales in China and an expensive reversal of Porsche's electric vehicle strategy