Porsche to cut up to 9,000 jobs by 2035 amid sales slump and EV shift
German luxury carmaker Porsche announced plans to cut up to 9,000 jobs by 2035 as part of a cost-cutting "future package" amid declining sales in China and a stalled electric vehicle strategy. The Volkswagen subsidiary reached a labour pact extending job security until 2035 while avoiding compulsory redundancies. Critics, including the Left Party and environmental group BUND, argue shareholder profit expectations should be reduced before jobs are sacrificed. The cuts include 5,000 new reductions on top of previously announced 3,900, plus 500 from subsidiary closures.
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Porsche to cut 5,000 more jobs by 2035, taking total reductions to 9,000
Porsche announced an additional 5,000 job cuts by 2035, bringing total planned reductions to 9,000 positions. The cuts are part of the company's 'Future Package' and 'Sportwagenschmiede 35' strategy, agreed with unions and works council. Reductions will be achieved through natural turnover, partial retirement, and voluntary severance, avoiding forced dismissals. In exchange, Porsche extended job and site guarantees at Zuffenhausen and Weissach until 2035 and committed €2.1 billion investment in those locations. Cost-saving measures include deferring 3.5% of pay rises until 2035, reducing Christmas bonuses, cutting mobile working days from 12 to 8 per month, and linking discretionary payments to performance. Senior management will forgo pay increases in 2027-2028. Employees will receive a one-off transformation payment of €1,500 in August 2026, with IG Metall members getting additional benefits. CEO Michael Leiters said the package enables strategic realignment and competitiveness.
VW Subsidiaries Porsche and Audi Announce Major Job Cuts and Savings Plans Amid Crisis
Volkswagen's premium subsidiaries Porsche and Audi are implementing significant cost-cutting measures due to a collapsing China business and US tariffs. Porsche confirmed an additional 5,000 job cuts by 2035, to be achieved through natural fluctuation, partial retirement, and severance agreements, with a guarantee of no operational layoffs until 2035. The company also pledged €2.1 billion in investments at its Zuffenhausen and Weissach sites. Audi lowered its 2026 sales forecast by €5 billion to €58-63 billion, citing geopolitical uncertainties and intense competition. Porsche's sales fell 16% in the first half of 2026, with a 33% drop in China. The job cuts are part of a 'future package' negotiated with the General Works Council and IG Metall union.
Crisis in the Auto Industry: VW Subsidiaries Porsche and Audi Implement Savings Plans
Volkswagen's premium subsidiaries Porsche and Audi are implementing significant cost-cutting measures amid a deepening crisis in the auto industry. Porsche announced an additional 5,000 job cuts by 2035, to be achieved through natural fluctuation, partial retirement, and severance agreements, with a guarantee of no operational redundancies until 2035. The company also pledged 2.1 billion euros in investments at its Zuffenhausen and Weissach sites. Audi lowered its 2026 sales forecast by 5 billion euros to 58-63 billion euros, citing geopolitical uncertainties, US tariffs, and intense competition in China. Both companies are suffering from a collapsing China business and the impact of US President Donald Trump's tariffs. Porsche's sales fell 16% in the first half of 2026, with a 33% drop in China. The job cuts are part of a 'future package' negotiated with the General Works Council and IG Metall union.
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Porsche to cut 5,000 jobs by 2035 under German labour pact
Porsche has agreed to eliminate 5,000 jobs by 2035 as part of a deal with labour officials that protects its main German factories and rules out compulsory redundancies. The job cuts, announced in Stuttgart, come as the luxury automaker faces a severe downturn in Chinese demand for German luxury vehicles, which has hit Porsche particularly hard. The agreement aims to balance cost reduction with job security for existing employees, reflecting the challenges in the global automotive market.
Porsche ramps up job cuts to 9,000 by 2035 amid restructuring
German luxury carmaker Porsche announced it will cut 9,000 jobs in total by 2035, as parent Volkswagen and its brands restructure in response to weak demand and stiff competition. In a deal reached after months of negotiations, management and labour representatives agreed to 5,000 additional job cuts that avoid compulsory redundancies through natural attrition and voluntary schemes. These follow earlier cuts of 3,900 jobs and another 500 announced by new CEO Michael Leiters, who was tasked with overhauling the business after sales in China collapsed and its EV strategy stalled. The deal also includes guarantees to keep sites open until 2035 and €2.1 billion in investments in its main factory and R&D centre. Volkswagen CEO Oliver Blume is pushing for 100,000 job cuts across the group and has warned that four factories, including one at Audi, are threatened with closure after 2030.
Porsche ramps up job cuts to 9,000 by 2035
German luxury carmaker Porsche announced on July 27, 2026, that it will cut 9,000 jobs in total by 2035, as parent Volkswagen and its brands restructure amid weak demand and stiff competition. The deal, reached after months of negotiations between management and labour representatives, includes 5,000 additional job cuts beyond a previously announced 3,900, plus 500 cuts linked to subsidiary closures. The cuts will avoid compulsory redundancies through natural attrition and voluntary schemes. New CEO Michael Leiters, who took over at the start of 2026, is tasked with overhauling the business after Porsche's China sales collapsed and its EV strategy stalled. The agreement also guarantees sites will remain open until 2035 and includes €2.1 billion ($2.39 billion) in investments in Porsche's main factory and R&D centre. Volkswagen CEO Oliver Blume is pushing for 100,000 job cuts across the group and has warned that four factories, including one Audi plant, face closure after 2030.
Porsche to Cut 5,000 Additional Jobs, Total Reaches 8,900
German automaker Porsche has announced plans to cut approximately 5,000 additional jobs over the coming years, bringing the total number of job cuts to around 8,900 when combined with reductions made last year. The company also stated that its job security agreement will be extended through the end of 2035. The move reflects ongoing challenges in the automotive industry, particularly for luxury car manufacturers facing shifting market demands and economic pressures. The report, published by Die Welt on July 27, 2026, highlights the deepening crisis at Porsche as it seeks to restructure operations and reduce costs.
Porsche Faces Criticism Over Plans to Cut Up to 6,000 Jobs by 2035
German sports car manufacturer Porsche is facing criticism over plans to cut between 5,000 and 6,000 jobs by 2035 as part of a cost-cutting 'future package.' The Volkswagen subsidiary aims to extend its employment guarantee, which currently prevents operational redundancies until mid-2030, through the end of 2035. Critics, including Left Party social policy spokesperson Cem Ince and BUND transport policy head Jens Hilgenberg, argue that profit expectations of major shareholders should be reduced before jobs are sacrificed. Hilgenberg links the job cuts to Porsche's strategic shift back toward combustion engines after stumbling on its electromobility path, noting that newly planned combustion engine models face a difficult market while electric vehicle demand rises. An agreement with the works council and IG Metall union is still pending. A works meeting is scheduled for Monday in Stuttgart to inform employees. Porsche had already announced socially responsible cuts of about 1,900 jobs in the Stuttgart region by 2029 and cuts at its Leipzig plant.
Porsche Faces Criticism Over Plans to Cut Up to 6,000 Jobs by 2035
German sports car manufacturer Porsche is facing criticism over plans to cut between 5,000 and 6,000 jobs by 2035 as part of a cost-cutting 'future package.' The company, a Volkswagen subsidiary, aims to extend its employment guarantee against operational redundancies until the end of 2035 in return. However, no agreement has been reached with the works council or IG Metall union. Cem Ince, social policy spokesperson for the Left Party, demanded that shareholder return expectations be scaled back before job cuts. Environmental group BUND's Jens Hilgenberg linked the cuts to Porsche's strategic shift back toward combustion engines, which has proven costly amid declining sales in China and a difficult market for combustion engines. Porsche had previously announced 1,900 job cuts in the Stuttgart region by 2029. A works meeting is scheduled for Monday to inform employees.