Porsche Layoffs: German Luxury Sports Carmaker Plans 9,000 Job Cuts by 2035 Under Volkswagen Group Cost-Cutting Drive
Porsche will eliminate 9,000 jobs by 2035 as part of a broader restructuring under parent Volkswagen amid weak demand, declining sales in China and EV challenges. The company will avoid compulsory layoffs through voluntary programmes, invest €2.1 billion in German operations and keep key production and R&D sites open until the end of 2035.
German luxury carmaker Porsche will cut around one in five jobs by 2035, eliminating a total of 9,000 positions, as parent company Volkswagen and its brands continue restructuring to cope with weak demand, growing competition and mounting pressure from the transition to electric vehicles.
The latest workforce reduction follows months of negotiations between Porsche management and labour representatives. Under an agreement announced on Monday, July 27, the company will eliminate an additional 5,000 jobs through voluntary programmes and natural attrition, avoiding compulsory redundancies. The move comes on top of 3,900 job cuts agreed in February 2025 and another 500 announced earlier this year by CEO Michael Leiters following the closure of subsidiaries. Layoffs Fear: 99% of Executives Expect AI-Driven Job Cuts in 2 Years.
Porsche Layoffs to Continue Through 2035
Porsche employed about 42,600 people at the end of 2024. The planned reductions represent nearly one-fifth of its workforce as the automaker seeks to improve efficiency and reduce costs amid a prolonged slowdown.
Leiters, who became CEO at the start of the year, was tasked with overhauling the company after sales in Porsche's once highly profitable China market declined sharply and its electric vehicle strategy lost momentum. Layoffs 2026: Over 1.22 Lakh Laid Off Globally by Tech Companies; AI Primary Reason.
According to Daniel Schwarz, automotive analyst at investment bank Metzler, the planned job cuts reflect the company's declining sales volumes. "They are unavoidable to reduce costs, because a return to strong growth in China is not expected."
Investment and Job Security Measures
Alongside the workforce reductions, Porsche and its works council said the agreement includes investments of €2.1 billion (£2.39 billion) in the company's main manufacturing plant in Stuttgart-Zuffenhausen and its research and development centre in Weissach.
The agreement also guarantees that both sites will remain operational for another five years, extending their future until the end of 2035. The announcement followed a meeting of Porsche's supervisory board last week, where the additional job reductions received approval.
Volkswagen Group Expands Cost-Cutting Efforts
The restructuring at Porsche forms part of a broader cost-cutting programme across the Volkswagen Group.
Oliver Blume, who previously served as Porsche CEO and continues to lead Volkswagen, has called for total job reductions across the group to double to 100,000 as European automakers face increasing competition from Chinese manufacturers and the financial impact of high tariffs.
Blume has also warned that four Volkswagen Group factories, including one operated by premium brand Audi, could face closure after 2030 as the company continues reshaping its operations.
Other German automakers, including Mercedes-Benz and BMW, are also reducing costs while navigating the industry's transition towards electric vehicles and responding to intensifying competition from Chinese rivals.
(The above story first appeared on LatestLY on Jul 28, 2026 07:17 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).