Porsche to axe one in five jobs by 2035 as China, EV woes bite
The deal includes €2.1 billion in factory investment and extends site protections at key German plants through 2035, Porsche said.
- On Monday, Porsche agreed to eliminate 5,000 jobs by 2035 through a deal with labor representatives that protects main German sites and rules out compulsory redundancies, relying instead on natural attrition and voluntary severance.
- Parent company Volkswagen faces mounting pressure from weak Chinese demand and slower electric car sales, with the group warning revenue may fall 3% this year while operational costs remain roughly 30 per cent higher than competitors.
- The strategy involves €2.1 billion investment in Zuffenhausen and Weissach factories, alongside simplifying the organization, removing management layers, and reducing research and development spending to improve profitability.
- These redundancies follow earlier plans from CEO Michael Leiters to cut about 3,900 jobs earlier this year, bringing total planned layoffs close to 9,400. The carmaker employs roughly 40,000 people and is reconsidering its product strategy.
- While the deal secures site protections through 2035, Volkswagen must navigate significant overhead challenges, aiming to trim at least €10 billion in expenses to stabilize operations amid persistent market headwinds.
144 Articles
144 Articles
Luxury carmaker Porsche to cut 9,000 jobs by 2035
Porsche said it will cut 9,000 jobs by 2035, as its parent company, Volkswagen, and its brands undergo restructuring. This amounts to around one in five jobs. In a deal announced Monday, Porsche management and labour representatives agreed to 5,000 additional job cuts that avoid compulsory redundancies through measures like natural attrition and voluntary schemes. This comes after months of negotiation. This comes a month after reports revealed…
Porsche to Cut 5,000 More Jobs Amid China Slowdown and Weak EV Demand, Total Nears 9,000
German automaker Porsche reportedly reached an understanding with labour representatives to downsize by 5,000 jobs amid faltering demand and rising competition. The additional job cuts come after the company recently decided to lay off 3,900 people as the luxury carmaker grapples with a collapsing operating margin. In all, the company would cut around one in five jobs by 2035. Porsche is also preparing for relatively lower production volumes com…
Porsche confirms plans to axe 5,000 jobs after 'hard-fought' negotiations with staff
Porsche confirms plans to axe 5,000 jobs after 'hard-fought' negotiations with staff . Porsche has confirmed plans to slash thousands of jobs from its workforce over the next nine years as it rolls out a huge restructuring of its operations
The German luxury car manufacturer Porsche will reduce almost a fifth of its workforce by 2035, which means the dismantling of about 9,000 jobs. The decision is part of the Volkswagen Group's extensive restructuring programme, which is trying to cope with the decline in demand, the difficulties in the Chinese market and the growing competition in the car industry.
German automaker Porsche has announced it will implement a downsizing plan affecting 9,000 employees by 2035, citing slowing global demand, sales losses in the Chinese market, and disruptions in the electric vehicle transition.
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