Porsche Plans to Reduce Workforce by 9,000 by 2035 Amid China Market and EV Challenges

German luxury automaker Porsche has reached an agreement with employee representatives to eliminate an additional 5,000 jobs by 2035, bringing the total planned workforce reduction to approximately 9,000 positions.

The latest agreement follows earlier restructuring measures, including 3,900 job cuts announced in February 2025 and 500 additional positions linked to subsidiary closures announced by CEO Michael Leiters earlier this year. The company said the latest reductions will be achieved through natural attrition and voluntary programs, avoiding compulsory layoffs.

Porsche employed around 42,600 people at the end of 2024. The company has been reshaping its operations after a sharp decline in sales in China and slower-than-expected progress in its electric vehicle strategy.

Industry analysts said the planned workforce reduction aligns with Porsche's lower sales volumes and reflects ongoing efforts to control costs as the company adapts to changing market conditions.

As part of the agreement, Porsche will keep its production sites open through the end of 2035 and invest €2.1 billion in its Stuttgart-Zuffenhausen manufacturing plant and Weissach research and development center.

The restructuring forms part of broader cost-cutting efforts across the Volkswagen Group, which is responding to increasing competition, changing demand, and pressure within the global automotive industry.