Porsche to cut another 5,000 jobs by 2035

Key facts

• Porsche plans to cut approximately 9,000 jobs by 2035.
• The restructuring includes an additional 5,000 job reductions through attrition and voluntary schemes.
• The company's profit margins declined to 1.1% last year.
• Plant location guarantees have been extended until 2035.
• The cuts are intended to address falling sales in China and costly electric vehicle missteps.

German luxury carmaker Porsche announced plans to cut approximately 9,000 jobs by 2035 as part of a new restructuring agreement. The deal, reached after months of negotiations between management and labor representatives, includes an additional 5,000 job reductions to be implemented through natural attrition and voluntary schemes, avoiding compulsory redundancies. These cuts are intended to address challenges such as a significant drop in sales in China, tariff issues, and costly electric vehicle missteps. The company's profit margins have declined sharply, reaching 1.1% last year. This latest package follows previous reductions of 3,900 jobs under former CEO Oliver Blume and 500 announced earlier this year. Plant location guarantees have been extended by five years, securing operations until 2035.