Porsche to cut another 5,000 jobs

Porsche is responding to declining sales figures and margins with a 'Future Package'. By 2035, a further 5,000 jobs will be cut at the Zuffenhausen and Weissach sites, along with reductions in compensation for the remaining staff. In return, the sports car manufacturer is providing employment guarantees and long-term commitments for its German sites and plans to invest €2.1 billion. Porsche AG’s executive board and general works council have agreed on a far-reaching restructuring programme ahead of the launch of the company’s new ‘Sportwagenschmiede 35’ strategy programme in October. The measures respond to declining vehicle sales, particularly in China, the impact of US tariffs and billions invested in electrification that have yet to generate returns. In the first half of 2026, Porsche’s operating margin fell to 7.8%, a sharp decline from its historical level of profitability. The core of the restructuring programme is the planned reduction of 5,000 jobs by 2035 at the Stuttgart-based carmaker. Porsche says the cuts will be implemented primarily through through retirements, voluntary departures and partial retirement, demographic change, partial retirement and voluntary termination agreements with severance payments. Including previously announced measures and reductions at subsidiaries, the total number of jobs affected will reach around 9,000. That includes 1,900 positions earmarked for elimination by 2030, announced in early 2025, as well as the decision not to renew 2,000 fixed-term employment contracts. Employment guarantees until 2035 In return, management has extended employment guarantees for employees at the Zuffenhausen and Weissach sites until 2035, meaning Porsche has committed not to carry out compulsory redundancies for operational reasons during that period. Weissach is home to Porsche’s research and development centre, while Zuffenhausen near Stuttgart is the company’s historic production site and builds the Taycan alongside several sports-car models. The planned job cuts will affect both administrative and production roles. The restructuring programme also includes guaranteed investments of 2.1 billion euros in Porsche’s two main sites in Baden-Württemberg. The company says the funding will secure the long-term production of its two-door sports cars in Zuffenhausen and strengthen development activities across the Volkswagen Group in Weissach. “The Future Package is good for Porsche. It gives us the opportunity to strategically realign our company and invest in our competitiveness,” said Porsche CEO Michael Leiters. To finance these investments, employees have agreed to a series of financial and structural concessions. Until 2035, 3.5% of current and future pay increases negotiated under Germany’s sector-wide collective bargaining agreements will be withheld for large parts of the workforce. The Christmas bonus will be permanently reduced from up to 100% to 60% of a month’s salary. Porsche will also reduce the maximum number of remote working days from twelve to eight per month, tighten production cycles and adjust paid ‘Steinkühler’ breaks, a longstanding break entitlement in Germany’s metalworking industry. At the same time, senior managers will forgo equivalent increases to their base salaries in 2027 and 2028. Transformation bonus for employees In return, Germany’s metalworkers’ union IG Metall secured a number of concessions for employees. In August 2026, all staff covered by collective agreements will receive a one-off transformation bonus of 1,500 euros. For IG Metall members, the payment will increase to 1,911 euros and will be complemented by an additional day of annual leave and a 200-euro voucher. Ibrahim Aslan, Chairman of the General Works Council, highlighted the complexity of the negotiations: “The package was hard-fought. Now we have to implement it together with the Executive Board.” The agreement does not address Porsche’s Leipzig plant in eastern Germany. The site is covered by its own labour agreement, and its long-term outlook remains uncertain. Expectations are focused on the planned transfer of Cayenne production from Bratislava to Leipzig, as well as a new model codenamed M1, which is set to succeed the discontinued combustion-engine Macan. The agreement may also have implications for labour negotiations elsewhere in the Volkswagen Group. By securing employment guarantees at Porsche until 2035, employee representatives have strengthened their position in discussions over restructuring, potentially influencing parallel negotiations at Volkswagen and Audi, where cost-cutting measures remain under discussion. porsche.com, cnbc.com