German automotive giant Porsche has announced the closure of three of its subsidiaries amid declining sales and profits. The most notable loss is the battery manufacturer Cellforce Group, as the company has decided to abandon in-house battery production and rely on external suppliers instead. This is reported by Techcrunch.com reports .
Additionally, Porsche eBike Performance, which develops transmission systems for e-bikes, and Cetitec, a software provider for Volkswagen Group, will also cease operations. As a result of this decision, more than 500 employees will lose their jobs.
Porsche CEO Michael Leiters emphasized the need for the company to return to its core business areas and undergo a strategic restructuring. The company's management is forced to cut costs to make Porsche more agile and efficient.
The company has recently suffered from a sharp decline in sales in North American, Chinese, and European markets. Specifically, deliveries in the Chinese market have dropped by 21 percent. Porsche attributes these difficulties to challenges in the transition to electric vehicles.
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