Porsche has announced plans to reduce its workforce by at least 25% in the medium term as part of its updated development strategy, the German carmaker said in a press release.

The company presented its new Sportwagenschmiede'35 strategy at its Investor Day on Wednesday, which is aimed at achieving its medium-term goals.

“Overall, the workforce in direct and indirect areas will be reduced by 25% in the medium term - with a strategic target of 30%,” the statement said.

Porsche adds that the number of management positions will be reduced by 40% in the same medium term.

As a result, the company plans to take the brand to a higher level by expanding personalization options and increasing the range in the more expensive market segments. Thanks to this, the manufacturer will be able to increase the average price of its high-class cars by 20% in the medium term, while ensuring the appropriate quality of the product.

Porsche is reducing also the number of variants in its model range by 20%, which, according to expectations, will enable sales to increase by about 30% per model variant in the medium term.

Porsche AG is a subsidiary of Volkswagen.