Porsche announced on Monday that it will eliminate 9,000 jobs by 2035, a decision made in conjunction with parent company Volkswagen's restructuring efforts due to weak market demand and fierce competition.
The job cuts include an additional 5,000 positions agreed upon with labor representatives, which will be achieved through voluntary measures and natural attrition, thus avoiding compulsory redundancies. This follows earlier announcements of 3,900 job cuts and 500 more linked to subsidiary closures made by new CEO Michael Leiters.
The urgency for these cuts stems from a significant decline in sales in Porsche's key China market and setbacks in its electric vehicle strategy. Other German automakers, such as Mercedes-Benz and BMW, are also implementing cost-cutting measures as they adapt to the electric vehicle transition and face challenges from high tariffs and competition from Chinese brands.
The recent agreement also ensures the continuation of operations at Porsche's sites for another five years and includes a commitment of 2.1 billion euros ($2.39 billion) for investments in its Stuttgart-Zuffenhausen factory and Weissach R&D center. This announcement follows a supervisory board meeting that approved the additional cuts.
Meanwhile, Volkswagen's CEO Oliver Blume is advocating for a more extensive reduction of 100,000 jobs across the group, citing the need for competitiveness against emerging Chinese brands and warning of potential factory closures after 2030