Key facts
- Porsche may cut an additional 5,000 to 6,000 jobs by 2035, according to German media reports.
- The potential job cuts would double the company's existing redundancy program.
- The plans are reportedly being discussed by Porsche's supervisory board as part of restructuring measures.
- CEO Michael Leiters indicated a need to streamline operations, reduce hierarchies, and cut bureaucracy.
- The company has faced declining sales in China and the impact of U.S. tariffs, leading to a significant drop in operating profit.
- Porsche is also adjusting its electric vehicle strategy, delaying some models in favor of internal combustion engine vehicles.
Porsche is reportedly planning to cut between 5,000 and 6,000 jobs by 2035 as part of a significant restructuring effort, according to German media outlets Manager Magazin and Bild newspaper. These potential cuts would double the company's current redundancy program, which has already seen over 500 jobs eliminated from subsidiaries. The news emerged as Porsche's supervisory board met to discuss these restructuring measures.
CEO Michael Leiters, who was appointed in January, has indicated a need to streamline operations, reduce hierarchies, and cut bureaucracy. These moves are intended to restore profitability amid mounting industry pressures, including increased competition in China and the impact of U.S. car tariffs. Porsche's total deliveries fell 10% to 279,000 cars, leading to a revenue slump of 12% to €32.2 billion and a sharp decline in operating profit to €413 million from €5.6 billion the previous year. The company's operating margin also fell significantly to 1.1% last year.
In response to these challenges, Porsche is also adjusting its electric vehicle strategy, delaying some planned electric models in favor of more profitable internal combustion engine vehicles. This strategic shift resulted in a €3.9 billion writedown. Porsche's parent company, Volkswagen, has also warned of more dramatic job cuts, planning to shed 50,000 jobs by the end of the decade.