Porsche plans to cut about one fifth of jobs by 2035, with a total of 9,000 positions to be eliminated. The decision is part of a broader restructuring of the Volkswagen Group and its brands, made necessary by weak demand and strong competition in the automotive sector. The overall picture reflects the need to review costs and organization as the market becomes increasingly competitive, especially for European manufacturers facing new pricing and innovation dynamics.
Read more Mercedes G-Class, Cabriolet version under study
Porsche will cut 20% of jobs
In this context, Porsche management and union representatives have agreed on a further employment intervention: in Monday’s agreement, another 5,000 cuts were defined, aiming to avoid forced layoffs. Among the tools are natural staff turnover and voluntary early retirement programs. The measures add to an initial package of 3,900 cuts agreed in February 2025 and another 500 announced during 2025 by CEO Michael Leiters, linked to the closure of some branches.
Plants secured
The reductions affect a company that at the end of 2024 had about 42,600 employees and come after difficulties emerged in the Chinese market, once considered a very profitable area for Porsche. According to analyst Daniel Schwarz, cited by Reuters, the staff cuts correspond to the drop in sales volume and would be inevitable to contain costs, as a return to strong growth in China is not in sight. The agreement nevertheless includes guarantees to keep the plants open for another five years until the end of 2035, along with investments of 2.1 billion euros in the main Stuttgart-Zuffenhausen plant and the Weissach R&D center.
Read more Audi collaborates with Volkswagen: goal relaunch
Click here to add Formula Passion as a preferred source on Google Discover: you will find our content more easily!
