Porsche to Cut 5,000 More Jobs in Germany by 2035, Total Reaches 8,900
Porsche announced on July 27 it will cut 5,000 additional jobs in Germany by 2035, bringing total German job reductions to about 8,900. The cuts affect production and R&D in Stuttgart. A package with unions extends job guarantees to 2035, invests 2.1 billion euros, and includes salary deferrals, bonus cuts, and a one-time transition bonus of 1,500 euros per employee in August 2026. Porsche also streamlined its board and dealer network in 2026. First-half 2026 deliveries fell 16.5% year-on-year, with new energy vehicle deliveries down 30.8%.
German sports car manufacturer Porsche announced on July 27 that it will cut 5,000 additional jobs in Germany by 2035. The reductions affect production plants and the research and development center in the Stuttgart region, where Porsche is headquartered. Previously, Porsche had announced about 1,900 job cuts in the Stuttgart area by 2029, and about 2,000 employees on fixed-term contracts will not have their contracts renewed upon expiry. This brings the total number of jobs to be reduced in Germany to approximately 8,900.
Porsche's management board and the general works council, together with IG Metall and Südwestmetall, have reached a future-oriented package. The agreement extends job security and plant protection agreements until 2035, with no compulsory redundancies during that period, and commits 2.1 billion euros in investment for the Zuffenhausen plant and the Weissach research and development center. Job optimization will be achieved through natural attrition, early retirement, and voluntary severance. Accompanying cost adjustment measures include: deferring 3.5% of employee salary increases until 2035, management forgoing basic salary increases in 2027 and 2028, gradually reducing the company's discretionary portion of Christmas bonuses from 45% to 5%, capping the total bonus at 60% of one month's salary instead of the previous maximum of one month's salary, and cutting the monthly remote work limit from 12 days to 8 days. In August 2026, Porsche will pay each employee a one-time transition bonus of 1,500 euros, with an additional 411 euros for union members.
In 2026, Porsche also streamlined its organization and optimized its dealer network. In May, Porsche announced a restructuring of its executive board, reducing the number of functional departments from eight to seven, abolishing the vehicle IT department, and streamlining three subsidiaries. On June 30, Porsche China stated that the Porsche centers in Jining, Shandong; Huai'an, Jiangsu; and Xingning, Nanning, Guangxi, would terminate dealership operations, while the Wuhu, Anhui, Porsche center will end sales operations on July 31, though after-sales service will continue. These adjustments are part of Porsche's earlier plan to streamline its dealer network.
Volkswagen Group's latest first-half 2026 financial report shows that Porsche delivered approximately 122,300 vehicles in the first half, down 16.5% year-on-year; new energy vehicle deliveries were about 23,700 units, down 30.8% year-on-year.