Porsche and Audi announce major job cuts and cost-saving plans amid crisis

Published Jul 28, 09:24 AM UTC

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.

Content shown outside its original language is machine translated and condensed.