Porsche will cut 9,000 jobs by 2035 due to falling demand

The company continues large-scale optimization

Porsche has agreed with employee representatives on a new stage of downsizing, which involves the elimination of another 5,000 jobs. Together with the previously announced 3,900 layoffs and another 500 positions related to the closure of subsidiaries, the total number of layoffs will reach 9,000 by 2035.

At the same time, the company does not plan forced layoffs. The reduction will be due to the natural outflow of personnel and voluntary redundancy programs.

Investments will be maintained, but the market remains under pressure

Despite the reduction in staff, Porsche will continue to invest in production. The company will invest 2.1 billion euros in the modernization of the main plant in Stuttgart-Zuffenhausen and the research center in Weissach, and will also extend the guarantees of the operation of its plants until the end of 2035.

The need for reorganization is explained by a drop in sales in China, a slowdown in the development of the electric vehicle segment, and increased competition from Chinese manufacturers. Similar challenges are forcing other German automakers to cut costs today.

Volkswagen is also preparing large-scale changes

Porsche's restructuring is part of the Volkswagen Group's wider austerity program. The management of the concern is considering the possibility of reducing up to 100,000 jobs in various divisions and does not rule out closing several plants after 2030 to increase the competitiveness of the business.