Porsche has just announced plans to cut around 9,000 jobs by 2035 at its manufacturing plant
Why has Porsche announced plans to cut around 9,000 jobs by 2035? Well, this is part of a major restructuring programme aimed at improving its long-term competitiveness amid weak demand, particularly in China where sales have slowed a lot (like with most other European car brands as well) and slower than expected electric vehicle adoption.
The latest move includes 5,000 additional job cuts, adding to the 3,900 positions already earmarked for reduction and another 500 jobs linked to subsidiary closures, with the company relying on natural attrition, voluntary severance and partial retirement instead of compulsory layoffs.
Despite the workforce reduction, Porsche has committed to investing €2.1 billion in its Stuttgart-Zuffenhausen plant and Weissach R&D centre while guaranteeing operations at both sites until 2035 as it works to strengthen its future product strategy.
Historically one of Porsche’s most profitable growth drivers, the Chinese market has seen a sharp drop in demand for European luxury cars. Local Chinese EV manufacturers are rapidly gaining market share with feature-heavy, competitively priced high-end electric vehicles, eroding sales for traditional imported luxury brands.
Global EV adoption, particularly in the premium sports car sector has lagged behind industry projections. After heavy upfront R&D investments (such as electrifying core lineups like the Taycan and Macan), consumer hesitation has squeezed profit margins, forcing Porsche to recalibrate its electrification timeline.
Porsche is navigating a significant lineup transition. Discontinuing legacy internal combustion engine (ICE) models before their successors fully enter the market has created temporary sales gaps in global volume, compounding the revenue decline.
As part of the wider Volkswagen Group, Porsche is feeling broader European manufacturing pressures, including rising energy costs, supply chain shifts, and tariffs. Parent-company CEO Oliver Blume and new Porsche CEO Michael Leiters are streamlining operations to bring Porsche’s baseline operational break-even point down to lower annual unit sales.
By pacing the 9,000 job reductions across nearly a decade (up to 2035) via natural attrition, voluntary buyout packages, and early retirement, Porsche avoids friction with German labor unions (Works Council/IG Metall) while avoiding compulsory redundancies.
The €2.1 billion commitment to the Stuttgart-Zuffenhausen plant and the Weissach R&D center, paired with site guarantees through 2035, signals that the company is trimming overhead and administrative complexity rather than stripping out core engineering capabilities.
By lowering fixed labor overhead while maintaining local development hubs, Porsche aims to protect its high-margin brand image while remaining agile through the ongoing EV transition.
