German carmaker Porsche to cut 5,000 jobs by 2035

German luxury sports carmaker Porsche announced on Monday it will reduce its workforce by 5,000 employees by 2035 as part of a strategic shift aimed at enhancing its competitiveness. This decision follows a significant profit collapse attributed to declining sales in China, where domestic electric vehicles now dominate the market, alongside U.S. tariffs and difficulties in its electric transition.

The job cuts will be "socially responsible," primarily achieved through natural attrition, demographic changes, an expanded partial retirement program, and voluntary severance agreements. Combined with previously announced reductions, Porsche aims to cut its workforce of over 30,000 by a total of 8,900 people.

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socially responsible reduction of a further 5,000 jobs by 2035, largely through natural attrition, demographic effects, the expansion of the special partial retirement programme and voluntary severance agreements.

As part of its "future package," Porsche will invest 2.1 billion euros ($2.4 billion) by 2035 in its Zuffenhausen and Weissach plants near Stuttgart. Employees at these sites are guaranteed employment and site protection until 2035, following negotiations with the general works council and trade unions. The company stated the "shared objective is to strengthen the competitiveness of the sports car manufacturer and secure as many jobs as possible in the long term."

Porsche is among several automakers facing challenges after substantial investments in electric vehicle technology, with demand proving weaker than anticipated. The company had previously announced a slowdown in its shift to EVs, which impacted the profits of its parent company, the Volkswagen Group. Measures include delaying the launch of some electric models and extending the production of combustion engine and hybrid vehicles.

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The shared objective is to strengthen the competitiveness of the sports car manufacturer and secure as many jobs as possible in the long term.