Porsche Announces Plans For Up To 6,000 More Job Cuts
Porsche announces major workforce restructuring plans.
Luxury automaker Porsche is reportedly preparing another round of workforce reductions as the company accelerates its restructuring efforts to improve profitability. The German carmaker is planning to cut an additional 5,000 to 6,000 jobs by 2035, according to reports, as it faces challenges including weaker sales in China, rising costs and difficulties surrounding its electric vehicle strategy.
The proposed job cuts would increase Porsche’s total planned workforce reduction to around 9,000 positions. The latest measures would come in addition to approximately 3,900 redundancies previously agreed under former Chief Executive Officer Oliver Blume. Current CEO Michael Leiters is reportedly targeting the additional reductions as part of a long-term plan to streamline operations and strengthen the company’s financial position.
Porsche’s supervisory board has supported the next stage of the restructuring programme, although the company has not officially confirmed the final number of job losses. A company spokesperson said discussions over the future restructuring package are still underway and that further details would be shared with employees once the remaining steps are completed.
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The restructuring comes at a difficult time for Porsche, which was previously considered one of the most profitable brands under the Volkswagen Group. The company has experienced pressure on operating margins, with reports indicating a sharp decline linked to lower demand in China, higher costs associated with tariffs and challenges in transitioning towards electric vehicles.
The planned workforce reductions could create further debate in Germany’s automotive sector, where Volkswagen and its luxury brand Audi are already facing concerns over possible plant closures in the coming years. The broader industry is undergoing major changes as traditional manufacturers adjust to slowing demand, rising production expenses and increased competition from electric vehicle makers.
As part of its turnaround strategy, Porsche aims to reduce costs, simplify its business structure and focus on premium vehicles with higher profit margins, including its sports car lineup and luxury SUVs. The company is also reviewing its global strategy to respond to changing consumer preferences and the rapid transformation of the automotive market.
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