Porsche to Cut Majority of Jobs at Battery Division, Says Union

In the most recent setback to Europe’s attempts to gain market share in the electric vehicle industry, a union spokeswoman told AFP on 21 August that Porsche’s battery manufacturing company would lay off the majority of its employees. According to IG Metall spokesman Kai Lamparter, the Cellforce Group subsidiary would lay off about 200 of its 286 employees.

Union Confirms Layoffs Amid Market Struggles

Official notification has been sent to the authorities, Lamparter added. He went on to say that it is reasonable to believe that notices will be sent out on August 25. A Porsche spokesman declined to comment on claims of layoffs, and Cellforce did not reply to AFP’s request for comment. Typically the most costly component of an electric vehicle, batteries have emerged as a major point of contention for automakers and the larger automotive industry.

China’s Dominance in EV Batteries

However, Chinese battery giants like CATL and BYD have made it difficult for European companies to establish themselves, which has raised concerns about the long-term viability of the continent’s auto industry.

European Battery Industry Under Pressure

Typically the most costly component of an electric vehicle, batteries have emerged as a major point of contention for automakers and the larger automotive industry. However, Chinese battery giants like CATL and BYD have made it difficult for European companies to establish themselves, which has raised concerns about the long-term viability of the continent’s auto industry.

Northvolt Bankruptcy & Porsche’s Scrapped Expansion

The most well-known battery manufacturer in Europe, Northvolt of Sweden, declared bankruptcy in March. US competitor Lyten is currently purchasing the majority of its assets. In April, Porsche announced it will scrap plans to increase battery production at Cellforce, citing lower-than-expected demand for EVs.

 The Stuttgart-based sports car manufacturer itself warned workers in July that its business model “no longer works in its current form” due to intense competition in China, a crucial market, after announcing 1,900 job losses in February.

Layoffs Across the Tech and Auto Industry in 2025

With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the tech sector are not expected to halt in 2025.

Companies are still cutting employees in an effort to simplify operations, save money, and emphasise automation and artificial intelligence, even though these figures are much lower than the major layoffs that occurred between 2022 and 2023.

Layoffs.fyi, a website that tracks layoffs in the industry, reports that 93 organisations have laid off nearly 23,500 tech workers so far this year, and the number is still growing. Google and Microsoft are apparently contemplating a new round of layoffs, according to the most recent job reduction reports.

According to reports, AI-led restructuring and performance-based terminations are part of the corporations’ goals to increase the effectiveness of their personnel.