Porsche to Cut a Further 5,000 Jobs — Update

By Dominic Chopping

Porsche said it would cut another 5,000 jobs as part of a broader push to streamline the German sports-car maker, which already includes thousands of layoffs announced earlier this year.

Chief Executive Michael Leiters warned last month that the company was in talks with employee representatives to slash jobs alongside other initiatives to ensure the competitiveness of Porsche's sites.

In a statement Monday, Porsche said the 5,000 jobs would go by 2035, in addition to the 3,900 it had already planned to cut by 2029, with most of the jobs reduced through natural attrition, a partial retirement program and voluntary severance agreements.

Compulsory redundancies have been ruled out, it said.

At the end of last year, Porsche had just under 42,000 employees.

Former McLaren boss Leiters previously outlined plans to make the automaker more efficient but had cautioned that investments and costs of reshaping the company would hit earnings this year.

He plans to boost profit by realigning the strategy to counter a slow uptake of electric vehicles, weakness in China, and U.S. tariffs. As part of this shift, Porsche is investing in new gas-powered and hybrid models while delaying new all-electric rollouts, targeting profitability over volume by producing more higher-margin, desirable cars.

The company is also reducing the number of model variants, allowing it to focus on a smaller range of more appealing cars.

A full strategy for the period to 2035 is due to be presented at an investor event in October.

In a statement Monday, Porsche said it has committed to invest 2.1 billion euros ($2.39 billion) across its main Zuffenhausen plant and the Weissach development site, ensuring the future production of its two-door sports cars at Zuffenhausen while development of all models continues to be concentrated at Weissach.

The investments will help lower personnel costs and increase flexibility and productivity at the sites, it said.

As part of the deal agreed with employee representatives, pay rises have been deferred until 2035 and annual bonuses slashed, while certain employees will receive other benefits such as additional days off and one-off payments.

The move comes as parent company Volkswagen Group is seeking to cut capacity and halve its model line-up as it warned that closing the cost disadvantage with peers would theoretically reduce its staffing by a further 50,000 jobs, on top of the 50,000 already agreed.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

July 27, 2026 09:54 ET (13:54 GMT)