BERLIN: German luxury automaker Porsche has announced plans to eliminate a total of 9,000 jobs by 2035 as it restructures operations in response to weakening demand, slowing sales in China, and intensifying global competition.
The latest restructuring plan includes 5,000 additional job cuts, following an earlier agreement reached in February 2025 to eliminate 3,900 positions. Earlier this year, CEO Michael Leiters also announced the loss of around 500 jobs due to the closure of subsidiaries.
The new agreement was reached after months of negotiations between Porsche’s management and employee representatives.
The company said the workforce reduction will be achieved through voluntary separation programs and natural attrition rather than compulsory layoffs.
The job reductions form part of a broader restructuring effort across parent company Volkswagen Group and its brands as European automakers face mounting pressure from slowing electric vehicle demand, rising production costs, and increased competition from Chinese manufacturers.
Porsche employed approximately 42,600 people at the end of 2024. The company has struggled in China, one of its most profitable markets, where sales have declined sharply, while its electric vehicle strategy has faced significant challenges.
Industry analysts said the planned workforce reduction reflects weaker sales and the lack of near-term prospects for a strong recovery in the Chinese market, making cost-cutting measures increasingly necessary.
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Other major German automakers, including Mercedes-Benz and BMW, are also pursuing cost-saving initiatives as they contend with fierce competition from Chinese rivals and the impact of higher tariffs.
