Porsche to cut 5,000 jobs by 2035, Audi lowers 2026 sales forecast

Published Jul 28, 09:24 AM UTC

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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