Porsche to cut 9,000 jobs by 2035 as restructuring deepens

Porsche will eliminate 9,000 jobs by 2035, equivalent to around one in five positions, as the luxury carmaker accelerates a long-term restructuring programme in response to weaker demand, a slowdown in its electric vehicle strategy and growing competition.

According to Reuters, the latest agreement between Porsche's management and labour representatives adds 5,000 job cuts to measures already announced over the past 18 months. The reductions will be carried out through natural attrition and voluntary programmes, avoiding compulsory redundancies.

Restructuring gathers pace

The latest workforce reduction follows earlier cost-cutting measures announced by the company. The restructuring plan includes:

• 5,000 additional job cuts agreed after negotiations between management and labour representatives.
• 3,900 positions already scheduled for elimination under a restructuring package agreed in February 2025.
• 500 further job cuts announced this year by CEO Michael Leiters following the closure of several subsidiaries.

Porsche employed around 42,600 people at the end of 2024, meaning the planned reductions will shrink its workforce by nearly 20% by 2035.

According to Reuters, Porsche's supervisory board approved the additional measures during a meeting last week.

China slowdown and EV challenges drive overhaul

The restructuring comes as Porsche faces sustained pressure in one of its most profitable markets.

Reuters reported Michael Leiters, who became Chief Executive earlier this year, was tasked with overhauling the business after sales in China declined sharply and the company's electric vehicle strategy lost momentum.

Industry analysts believe the workforce reductions closely reflect lower sales volumes.

Daniel Schwarz, an automotive analyst at investment bank Metzler, told Reuters the cuts are necessary to reduce costs because a strong recovery in China's market is not expected.

Investment continues alongside cost reductions

While reducing headcount, Porsche has also committed fresh investment to its German operations.

According to a joint statement from the company and its works council, the agreement includes:

• A commitment to keep production sites open until the end of 2035.
• €2.1 billion in investment for Porsche's main manufacturing plant in Stuttgart-Zuffenhausen.
• Additional investment in the company's research and development centre in Weissach.

The company is attempting to balance cost reductions with continued investment in manufacturing and engineering capabilities.

Part of a wider industry reset

Porsche's restructuring reflects broader challenges facing Europe's automotive industry.

According to Reuters, German manufacturers including Mercedes-Benz and BMW are also reducing costs as they adapt to the transition towards electric vehicles, intensifying competition from Chinese manufacturers and the impact of higher tariffs.

The changes also align with a broader restructuring programme across the Volkswagen Group.

Former Porsche CEO Oliver Blume, who continues as Volkswagen Group Chief Executive, is seeking to increase planned workforce reductions across the group to 100,000 jobs. Reuters reported Blume has also warned four Volkswagen Group factories, including one operated by Audi, could face closure after 2030 if competitiveness does not improve.

Long-term transformation remains the priority

Porsche's latest restructuring underlines the scale of change confronting premium carmakers as demand patterns shift and competition intensifies.

While the company is preserving its manufacturing footprint and investing billions in its German facilities, the planned workforce reduction signals a long-term effort to align costs with market conditions and reposition the business for an increasingly competitive automotive landscape.