Porsche Agrees to Cut 5,000 Jobs by 2035 in Restructuring Plan

Porsche Agrees to Cut 5,000 Jobs by 2035 in Restructuring Plan

The newly announced job cuts follow an earlier plan to reduce the workforce by about 3,900 positions toward the end of the decade, which included 2,000 temporary employees, alongside about 500 positions in subsidiaries. According to [Reuters](https://www.kommersant.ru/doc/8846033), when combined with previous measures, the company plans to cut approximately 9,000 workers by 2035, affecting roughly every fifth employee from a workforce that numbered about 42,600 at the end of 2024. Chief Executive Officer [Michael Leiters](https://belta.by/world/view/glava-porsche-nameren-sokratit-ot-5-do-6-tys-rabochih-mest-k-2035-2026/) has previously outlined intentions to reduce between 5,000 and 6,000 roles.

Investments and Guarantees for German Facilities

In exchange for workforce concessions, employment and production guarantees at the Zuffenhausen and Weissach facilities are extended until the end of 2035, according to details reported by [theins.ru](https://theins.ru/news/295371). The agreement includes €2.1 billion in investments directed toward these two German sites to strengthen domestic operations.

The main plant in Stuttgart-Zuffenhausen and the research and development center in Weissach are central to these operations. [iz.ru](https://iz.ru/2139397/2026-07-27/porsche-sokratit-9-tys-rabochikh-mest-k-2035-godu) noted that the plan secures production sites for the coming years, while [inform.kz](https://www.inform.kz/ru/porsche-zamorozit-zarplati-isokratit-eshe-5000-rabochih-mest-e11da06c) confirmed that mass layoffs will be avoided by relying on vacant position freezes, early retirement, and voluntary packages.

Concessions, Compensation Adjustments, and Remote Work Limits

To secure the production guarantees and avoid compulsory terminations, employees agreed to specific labor and compensation concessions. As reported by [RB.ru](https://rb.ru/news/porsche-planiruet-sokratit-5-tys-sotrudnikov-do-2035-goda-takzhe-kompaniya-urezhet-premii-bonusy-i-zarplaty/), future collective-bargaining salary increases will be reduced by 3.5% through 2035, the Christmas bonus will drop from 100% to 60% of monthly wages, and annual bonuses will decrease and be more strictly tied to company financial performance.

Additionally, [finance.rambler.ru](https://finance.rambler.ru/business/56819922-porsche-planiruet-uvolit-esche-5000-sotrudnikov-v-skorom-buduschem/) noted that a significant portion of management will forgo base salary increases in 2027 and 2028. Remote work policies have also been tightened, limiting employees to a maximum of 8 days of work from home per month, down from the previous limit of 12 days.

Financial Pressures and Market Challenges

The restructuring reflects mounting pressure on parent firm Volkswagen AG and its subsidiary brands amid weak demand, intense competition, and declining financial results. [RB.ru](https://rb.ru/news/porsche-planiruet-sokratit-5-tys-sotrudnikov-do-2035-goda-takzhe-kompaniya-urezhet-premii-bonusy-i-zarplaty/) reported that Porsche’s net profit for 2025 fell by 91.4% to €310 million, following a peak record in 2023 when the company sold 320,221 vehicles. In the first half of 2026, sales dropped 16% year-over-year to 122,300 vehicles, led by a 32% collapse in the Chinese market down to 14,500 units.

Analysts attribute the downturn to weak Chinese demand, international tariffs, shifting vehicle lineups including the phasing out of the Macan and 718 models, and a slower-than-expected growth rate in the market for electric models such as the Taycan. With projected vehicle sales for 2026 expected to reach only around 250,000 units, factory capacity utilization has declined significantly, prompting management to execute broad cost-cutting measures across all organizational levels.