• Porsche aims to reduce an additional 5,000 positions by 2035 as part of a socially responsible workforce reduction.
  • The move is part of broader cost-cutting measures to boost profitability amid weaker demand and the EV transition.
  • The automaker is negotiating with labor representatives to minimize hardship through voluntary programs and retraining.

Porsche AG, the luxury sports car maker owned by Volkswagen Group, announced plans to cut an additional 5,000 jobs by 2035, building on prior reductions. The company emphasized that the cuts would be implemented in a socially responsible manner, with ongoing discussions with the works council to explore severance packages, early retirement, and retraining opportunities.

“We are committed to a fair and socially responsible process,” a Porsche spokesperson said, declining to elaborate on specifics. The reduction is part of a broader efficiency drive aimed at improving operating margins, which have been squeezed by weaker demand in key markets like China and the costs of electrification. The company already reduced about 3,900 positions through earlier programs.

Michael Leiters, who became CEO in 2023, has spearheaded a restructuring push to align costs with changing market conditions. Porsche has faced headwinds from geopolitical tensions, supply chain disruptions, and uneven EV adoption. The job cuts will likely target administrative and manufacturing roles, though plant closures are not anticipated.

Analysts note that Porsche must balance cost control with maintaining its brand prestige and high-margin product lineup, including the electric Macan and next-gen 911. The EV transition remains a key uncertainty, with the pace of demand in the luxury segment still evolving.

The announcement comes as Volkswagen Group also pursues cost savings across its brands. Industry observers are watching for further updates on the breakdown of the 5,000 figure and the timeline for phased reductions through 2035. Labor unions have signaled they will push for voluntary measures to avoid compulsory layoffs.