Porsche to cut 9,000 jobs by 2035 as restructuring deepens

Porsche announced on Monday that it will eliminate a total of 9,000 jobs by 2035, roughly one-fifth of its global workforce, after management and labor representatives agreed to a second restructuring package under CEO Michael Leiters.

The agreement adds approximately 5,000 positions to the 3,900 cuts already announced earlier this year, according to a joint statement from both sides reported by Reuters. The reductions will avoid compulsory redundancies, relying instead on natural attrition and voluntary schemes. In exchange, remaining employees will receive job security guarantees through 2035.finance.yahoo+2

A Crisis on Multiple Fronts

The deeper cuts reflect a worsening outlook for the Stuttgart-based luxury carmaker, which is contending with falling sales in China, the impact of U.S. tariffs, and an electric vehicle strategy that has failed to gain traction. Parent company Volkswagen and its brands are restructuring broadly in the face of weak demand and intensifying competition.finance.yahoo

Porsche's struggles with electrification have been particularly acute. In early 2026, Bloomberg reported that Leiters was weighing whether to cancel the planned battery-electric versions of the 718 Boxster and Cayman before they reach production, citing development delays and ballooning costs. In May, Porsche shuttered three subsidiaries — including Cellforce Group, its battery cell manufacturing venture — and cut an additional 500 jobs.layoffhedge+1

Betting on New Models

The cuts are expected to concentrate on administration, management, and development roles. Annual special payments to employees will be capped at €1,500, and Christmas bonuses will be reduced.brusselssignal

Porsche is banking on an upcoming wave of new models to reverse its sales decline. The company currently produces three fully electric vehicles — the Taycan, the electric Macan, and the electric Cayenne — but faces pressure from softening demand across its key markets.motor1

The announcement marks the most aggressive workforce reduction in Porsche's recent history, underscoring how far the brand's fortunes have shifted since it was among the auto industry's most profitable nameplates.