Porsche Deepens Cuts to 9,000 Jobs as China Slump and EV Reversal Bite

Porsche has agreed to eliminate a further 5,000 jobs at its German sites by 2035, taking its cumulative restructuring toward 9,000 roles, in a stark admission that the collapse of its Chinese business and a costly retreat from electrification have upended what was once the industry's most profitable carmaker.

The executive board and general works council signed off on the "Future Package" on 27 July, a deal negotiated with the IG Metall union and the Südwestmetall employers' association ahead of the "Sportwagenschmiede 35" strategy programme due in October. The 5,000 cuts, concentrated at the Zuffenhausen plant and the Weissach development centre, come on top of roughly 3,900 reductions already planned plus around 500 tied to earlier subsidiary closures. There will be no compulsory redundancies, with the losses delivered through natural attrition, expanded partial retirement and voluntary severance across nine years.

The rationale is a brutal deterioration in performance. Vehicle sales fell 16 per cent globally in the first half, with revenue down 6 per cent, and the operating margin has slid to 7.8 per cent from the high-teens levels that once defined the brand. The pressures are threefold: a China market where deliveries have collapsed, the weight of US tariffs, and billions sunk into electrification that has yet to generate returns. The gas-powered Macan went out of production this summer, its electric successor not due before 2028, while the 718 Boxster and Cayman remain on hiatus until 2027.

Employees shoulder much of the adjustment. A 3.5 per cent agreed pay rise is deferred to 2035, the company-funded share of the Christmas bonus shrinks toward 5 per cent, and home-working is capped at eight days a month. In return, Porsche guarantees employment and site protection through 2035 and commits €2.1 billion to Zuffenhausen and Weissach. Workers receive a one-off transformation bonus of €1,500 this month, rising to €1,911 for union members.

There was one bright spot: first-half net profit rose 34 per cent to €1.35 billion, as buyers favoured pricier 911 GTS, Turbo and GT variants, offering new chief executive Michael Leiters a measure of cover as he retools the business around fewer, higher-margin models.