Key facts
- Porsche plans to cut an additional 5,000 jobs by 2035.
- This is part of a second restructuring package agreed upon by management and labor representatives.
- The job reductions will be carried out in a socially responsible manner.
- Plant location guarantees have been extended by five years until 2035.
- Previous cuts included 3,900 redundancies under a prior CEO and 500 announced earlier this year.
German automaker Porsche has announced plans to cut an additional 5,000 jobs by 2035 as part of a second wave of restructuring measures. The agreement, reached between management and labor representatives, aims to address the company's financial challenges, including a collapse in sales in China, tariff issues, and costly electric vehicle missteps.
These new cuts follow a previous package that eliminated 3,900 jobs under former CEO Oliver Blume, who now leads the Volkswagen Group. Additionally, CEO Michael Leiters had already announced 500 job reductions earlier this year. The company stated that the upcoming layoffs will be conducted in a socially responsible manner. Alongside the job cuts, plant location guarantees have been extended by five years, securing operations until 2035.
Porsche's supervisory board has backed the latest restructuring initiative. Media reports had previously suggested that the total job cuts could reach 9,000. The company's profit margins have significantly declined in recent years, falling to 1.1% last year from comfortable double-digit percentages. Leiters' strategy focuses on cost-cutting and a streamlined model lineup, emphasizing high-margin vehicles like the 911 sports car and luxury SUVs.