Porsche to Cut 5,000 Additional Jobs in Germany, Bringing Total Reductions to Nearly 9,000 by 2035

Porsche has approved a restructuring plan to cut an additional 5,000 jobs in Germany by 2035, bringing planned workforce reductions to approximately 8,900. Under Chief Executive Michael Leiters, the sports-car maker is responding to a 91% decline in 2025 net income to 310 million euros amid weakness in China, US tariff policy, lower demand for electric models, restructuring costs, and a costly shift toward developing and producing more combustion-engine vehicles. Porsche extended employment guarantees through 2035, while the agreement partially withholds collectively bargained pay increases, reduces Christmas bonuses, and links employee bonuses more closely to company performance. Focus Online reported that the agreement could complicate broader cost-cutting negotiations at Volkswagen and Audi.

Porsche job cuts Stuttgart

• ▪Porsche will invest 2.1 billion euros in the Stuttgart-Zuffenhausen plant and the Weissach development center to secure future production and development.
• ▪Porsche will achieve the job cuts through natural attrition, early retirement, and voluntary severance agreements, ruling out compulsory redundancies until the end of 2035.
• ▪Porsche will cut an additional 5,000 jobs in Germany by 2035, focusing on the Stuttgart-Zuffenhausen plant and the Weissach development center.
• ▪The additional 5,000 job cuts bring Porsche's total planned workforce reductions to approximately 8,900 by 2035, following around 1,900 earlier planned job cuts and the expiration of about 2,000 fixed-term employment contracts.

Employee compensation reductions

• ▪Porsche will reduce the maximum allowed remote work days for employees from twelve to eight days per month.
• ▪Large parts of Porsche's management will waive increases in basic compensation in 2027 and 2028.
• ▪To fund the restructuring, Porsche will partially withhold collectively bargained pay increases through 2035, reduce Christmas bonuses, and link employee bonuses more closely to company performance.

Porsche profit collapse China

• ▪Porsche's net income fell by 91 percent in 2025 to 310 million euros amid weakness in China, US tariff policy, lower demand for electric models, restructuring costs, and the costly decision to develop and produce more combustion-engine vehicles.
• ▪Porsche's global vehicle sales fell by 10 percent in 2025 to 279,400 units, with sales in China more than halving between 2021 and 2025.

CEO Leiters turnaround strategy

• ▪Porsche Chief Executive Officer Michael Leiters aims to lower the company's break-even point to approximately 180,000 annual vehicle sales.
• ▪Porsche Chief Executive Officer Michael Leiters plans to streamline the product range, reduce model variants, and focus on high-margin vehicles like the 911 and luxury SUVs.
• ▪Porsche closed three subsidiaries, resulting in 500 job losses in addition to the main workforce reductions.

Volkswagen Group labor tensions

• ▪Porsche's generous employment guarantee until 2035 could complicate Volkswagen Group Chief Executive Officer Oliver Blume's cost-cutting negotiations with labor representatives at Volkswagen and Audi.
• ▪Volkswagen Group Chief Executive Officer Oliver Blume is seeking a separate restructuring package that could cut up to 50,000 jobs worldwide and close four German plants.