BERLIN: Investment bank Metzler’s automotive analyst Daniel Schwarz said Porsche’s planned 9,000 job cuts by 2035 are “unavoidable” as sales volumes decline following a collapse in the automaker’s once highly lucrative China market and setbacks to its EV strategy.
The cuts, which amount to roughly one in five jobs, are part of a broader restructuring effort at Porsche as parent Volkswagen and its brands contend with weak demand and intensifying competition.
According to Reuters, Porsche and labour representatives agreed on Monday (July 27) to eliminate an additional 5,000 roles through natural attrition and voluntary schemes, avoiding compulsory redundancies.
The agreement came after Porsche’s supervisory board approved the additional workforce reductions at a meeting last Wednesday. The deal also guarantees Porsche’s sites will remain open through 2035, alongside €2.1 billion (S$3.09 billion) in investments for its Stuttgart-Zuffenhausen plant and Weissach R&D centre.
The latest measures come on top of 3,900 job cuts announced in February 2025 and another 500 linked to subsidiary closures announced by CEO Michael Leiters earlier this year.
Porsche’s workforce stood at about 42,600 at the end of 2024.
Volkswagen CEO Oliver Blume, Mr Leiters’ predecessor as Porsche chief, is now also pushing for up to 100,000 job cuts across the group. He said this was a necessary measure to remain competitive against Chinese rivals in Europe. He has also warned that four Volkswagen factories, including an Audi plant, could face closure after 2030.
Besides Porsche, German rivals Mercedes-Benz and BMW have also stepped up cost-cutting efforts amid growing competition from Chinese automakers, forcing traditional carmakers to navigate the shift to electric vehicles while absorbing the impact of tariffs. /TISG
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