Porsche is extending its cost-cutting strategy with another 5,000 job reductions, while committing to keep its German manufacturing sites open.
Porsche has reached an agreement with employee representatives on the next phase of its restructuring program, which calls for the elimination of another 5,000 positions by 2035. Combined with previously announced workforce reductions, the automaker expects to cut roughly 9,000 jobs in total—about one-fifth of its current global workforce.
The latest measures build on the restructuring efforts launched under CEO Michael Leiters. Earlier this year, Porsche announced plans to eliminate 3,900 positions and shut down several subsidiary operations, affecting an additional 500 employees.
The company cites several factors behind the restructuring, including slowing vehicle sales, particularly in China, intensifying competition from domestic Chinese automakers, and slower-than-expected growth in demand for electric vehicles. Rising costs associated with developing new models and upgrading manufacturing facilities have also increased financial pressure.
Despite the workforce reductions, Porsche says it does not plan to implement involuntary layoffs. Instead, the company intends to reduce headcount through natural attrition, early retirement programs, and voluntary separation packages.
As part of the agreement, Porsche also committed to keeping its manufacturing facilities in Zuffenhausen and Weissach operating through at least the end of 2035. The automaker will invest approximately $2.4 billion in the two German sites over that period, reinforcing its long-term commitment to domestic production.
The restructuring is part of Porsche's broader strategy to improve efficiency and better position the company for changing market conditions. Management is expected to provide additional details about its long-term business plan during the company's Capital Markets Day event this fall.