Porsche to cut more than 500 jobs, close three divisions

(Sharecast News) - Luxury sports car maker Porsche has announced more than 500 job cuts and the discontinuation of three divisions as part of its sharpened focus on core businesses.

The German auto group revealed on Friday that battery subsidiary Cellforce, electric bicycle outfit Porsche eBike Performance and software and connectivity arm Cetitec would all be closed as part of a wider "strategic alignment".

Porsche said that Cellforce "no longer has a sufficiently viable long-term perspective", while changing market conditions led to the discontinuation of the e-bike and software ventures.

"In total, more than 500 employees are affected by the planned job reductions," the firm said in a statement.

The moves follow last month's announcement that Porsche plans to sell its stakes in Bugatti Rimac and the Rimac Group to an international consortium as part of the company's refocusing on its core business. Porsche held a stake of 45% in Bugatti Rimac and a 20.6% stake in Rimac Group.

"Porsche must refocus on its core business. This is the indispensable foundation for a successful strategic realignment. This forces us to make painful cuts - including our subsidiaries," said chief executive Michael Leiters.

Porsche Automobil Holding was trading 0.3% higher at €31.76 by 1543 BST.