Porsche to Cut 5,000 Jobs by 2035 Amid Sales Decline

German luxury sports carmaker Porsche, a subsidiary of the Volkswagen Group, announced on Monday that it will reduce its workforce by 5,000 jobs by 2035 as part of a strategic realignment aimed at boosting competitiveness. This decision comes in response to a significant drop in profits attributed to declining sales in China, where domestic electric vehicles have gained market dominance, as well as US tariffs and challenges in its electric vehicle transition.

The job cuts will be achieved through natural attrition, demographic effects, a special partial retirement program, and voluntary severance agreements. In total, Porsche plans to reduce its workforce of over 30,000 by 8,900, including cuts announced last year.

The company will invest 2.1 billion euros ($2.4 billion) by 2035 in its Zuffenhausen and Weissach plants, ensuring employment and site protection for workers until 2035. Additional cost-cutting measures include deferring wage increases until 2035 and senior executives foregoing salary increases in 2027 and 2028.