Porsche May Cut 5,000 More Jobs, Total Layoffs Could Nearly Double To 9,000 By 2035

Porsche could nearly double its ongoing job cut programme, with plans for another 5,000 layoffs, German media reported on Wednesday, as the carmaker's supervisory board met to discuss further restructuring measures.

Manager Magazin, citing unnamed sources, first reported the figure. Separately, Bild newspaper reported that Porsche CEO Michael Leiters plans to cut between 5,000 and 6,000 jobs by 2035.

Porsche has long been one of the Volkswagen Group's most profitable businesses. However, its margins have fallen sharply in recent years, from comfortable double-digit percentages to just 1.1% last year, according to reports.

The decline has been driven by falling sales in China, once a key market for the brand, along with rising tariff-related costs and a stalled push into electric vehicles that has cost the company billions of euros.

Total Job Cuts Could Reach 9,000

If the new cuts go ahead, Porsche's total planned workforce reduction would rise to around 9,000 jobs. This would come on top of about 3,900 redundancies already agreed under former CEO Oliver Blume.

Labour representatives and Porsche's management have been negotiating this second package of measures, which is expected to be announced in the coming week.

Porsche's parent company, Volkswagen, has separately warned that up to 100,000 jobs could be cut across the wider group as it works to become more cost competitive.

Porsche's supervisory board has approved moving ahead with the next phase of restructuring, though the company has not confirmed the exact number of job cuts involved.

A Porsche spokesperson said discussions on the restructuring package are continuing, and further details will be shared with employees soon. "Now it's time to finalise the last steps," the spokesperson told Reuters.

As part of its turnaround strategy, Porsche is aiming to cut costs, simplify its operations and focus more closely on its high margin vehicles, including its sports cars and luxury SUVs. The company is also reviewing its broader strategy as it adapts to changing trends in the global auto industry and rising competition, particularly in the electric vehicle segment.

The job cuts, if confirmed, would add to existing concerns at Volkswagen, where four manufacturing plants belonging to the group and its luxury brand Audi are already facing possible closure over the next decade.