Porsche plans to cut around 9,000 jobs by 2035, or about one in every five positions, after agreeing with labour representatives to eliminate an additional 5,000 roles on top of job cuts already underway.
The luxury carmaker is restructuring its business as it grapples with falling sales in China, weaker-than-expected demand for electric vehicles (EVs) and intensifying competition from Chinese automakers.
These job cuts also form part of a broader turnaround strategy under CEO Michael Leiters, who took over earlier this year as Porsche seeks to restore profitability following mounting financial pressure.
David Adubiina
Why Is Porsche Cutting Jobs?
The latest agreement adds 5,000 more job reductions to measures already underway, bringing Porsche's planned workforce reduction to around 9,000 employees by 2035. Rather than relying on compulsory layoffs, the company says it will reduce headcount through natural attrition, early retirement and voluntary departure programmes.
This move comes as Porsche faces growing pressure across several key markets. Sales in China have weakened sharply, with Porsche's deliveries falling 26% in 2025 to 41,938 vehicles as buyers increasingly turned to domestic brands such as BYD, Xiaomi and Nio, whose feature-rich electric vehicles have intensified competition in the premium market.
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