Porsche secured an agreement with staff to deliver voluntary and natural attrition based reductions, while promising plant guarantees and €2.1 billion investments to stabilize production.
Berlin, July 27 – the German manufacturer of premium automobiles Porsche announced a future reduction of the workforce by about 20% by 2035, a total of 9,000 positions, in the context of Volkswagen’s restructuring and its brands due to weak demand and fierce competition amid the shift to electric vehicles.
On Monday, after prolonged negotiations, Porsche management and representatives of the workers agreed on 5,000 additional cuts, to be implemented without compulsory layoffs through natural attrition and voluntary programs.
These measures complement the previous package of 3,900 cuts agreed in February 2025, and another 500 agreed this year in connection with the closure of units.
As of the end of 2024, Porsche employed around 42,600 people.
When Michael Leiters became CEO at the start of the year, he was tasked with restructuring the business after a slump in China sales and a slowdown of the electric-vehicles strategy.
They are inevitable for cutting costs, as a return to strong growth in China is not anticipated.
– Daniel Schwarz
Other German automakers, such as Mercedes-Benz and BMW, are also cutting costs to stay competitive in the race with Chinese manufacturers amid the shift to electric vehicles, in light of high tariffs.
As part of the agreement, Porsche also provides guarantees to keep the plants open for another five years – until the end of 2035 – as well as investments totaling €2.1 billion in the main plant in Stuttgart-Zuffenhausen and in the R&D center in Weissach, as stated in a joint statement by the company and the works council.
Following last week’s supervisory board meeting, management received approval for additional cuts.
Leiters’ predecessor, Oliver Blume, remained CEO of Volkswagen after the completion of the dual leadership, which many investors questioned.
In the context of the broader industry environment, Porsche continues to adapt to new market realities, strengthening its position in innovation and manufacturing capabilities, while maintaining resilience in the face of growing competition from Chinese brands.