Porsche Plans 5,000 More Layoffs by 2035 and Extends German Plant Job Protections

Porsche announced on July 27 that it will cut an additional 5,000 jobs by 2035, following a second round of restructuring agreements reached between management and labor representatives. These job cuts build upon two previously announced rounds: a plan to eliminate 3,900 positions unveiled earlier this year by new CEO Michael Lohscheller, followed by an additional reduction of 500 roles. As the luxury automotive brand under the Volkswagen Group, Porsche has faced mounting business pressures in recent years. This latest restructuring forms part of Volkswagen Group’s broader cost-cutting strategy aimed at addressing high operating costs, intense market competition, and tariff-related challenges. The company stated that the layoffs will be implemented in a “responsible manner, with due consideration for employees’ interests,” to minimize adverse impacts. At the same time, Porsche pledged to extend operational guarantees for its two major German production sites—Zuffenhausen and Weissach—through 2035 and plans to invest €2.1 billion (approximately $2.39 billion) in these facilities to support their future development.