Porsche to Cut 5,000 More Jobs in Germany

Porsche will cut a further 5,000 jobs in Germany as part of a restructuring plan aimed at improving competitiveness, while extending its job security agreement until the end of 2035.

The layoffs will affect the company's main plant in Stuttgart-Zuffenhausen and its Weissach development center. Porsche said compulsory redundancies would be avoided, with workforce reductions achieved through retirements, partial retirement schemes and voluntary severance agreements.

The agreement, reached with employee representatives, the IG Metall union and employers' association Südwestmetall, also includes €2.1 billion in investments to secure production of two-door sports cars at the Stuttgart plant and strengthen development activities at Weissach.

To help fund the investment program, Porsche will reduce labor costs by suspending part of agreed pay rises until 2035, cutting year-end bonuses and linking employee incentives more closely to company performance. Many senior managers will also forgo salary increases in 2027 and 2028, while the monthly work-from-home allowance will be reduced from 12 days to eight.

The latest measures follow an earlier restructuring program announced in February 2025, which included the elimination of around 1,900 jobs by 2029, the non-renewal of approximately 2,000 fixed-term contracts and further workforce reductions at the company's Leipzig plant and several subsidiaries.