Porsche to Cut 5,000 More Jobs by 2035

German automaker Porsche is set to eliminate an additional 5,000 jobs by 2035 as part of a comprehensive strategy to ensure the long-term viability of its manufacturing facilities. This move is an extension of the broader workforce reduction plan initiated by its parent company, the Volkswagen Group.

The Volkswagen Group, Europe's largest car manufacturer, is already implementing a plan to reduce its overall workforce by 50,000 employees. The majority of these reductions, 35,000, are concentrated within the Porsche brand, with the remaining cuts spread across Audi and Porsche. The newly announced 5,000 positions at Porsche will be phased out through a combination of early retirements, extended voluntary part-time work programs for older employees, and the termination of existing contracts.

Porsche stated that these measures have been agreed upon with the company's works council. Alongside the job cuts, the company plans to invest a total of 2.1 billion euros in its Zuffenhausen and Weissach factories. Other adjustments include a 40% reduction in the Christmas bonus and a decrease in remote work options, limiting telecommuting to eight days per month.

These developments come as Porsche prepares to release its first-half financial results. The announcement follows recent news that the Volkswagen Group's profits have fallen by 30.7% to 3.103 billion euros in the first half of 2026. The group's vehicle sales also dropped by 8.4% in the same period, largely due to significant market declines in China and increased competition. Volkswagen Group CEO Oliver Blume cited geopolitical crises, trade conflicts, stringent regulatory requirements, volatile markets, and heightened competition as key challenges facing the international automotive industry.