Porsche plans further job cuts in administration and development

According to information from Handelsblatt, up to 4,000 additional jobs could be cut at Porsche in a further round of personnel reductions. The report further stated that this includes the elimination of more than 4,000 positions. When asked by dpa, a Porsche spokesperson declined to confirm the specific number.

Background

Already in March, Michael Leiters had announced extensive further workforce reductions. By 2029, around 1,900 jobs in the Stuttgart region are to be cut under a socially acceptable solution. In addition, according to the company, the contracts of around 2,000 fixed-term employees are expiring, and in May Porsche announced the closure of three subsidiaries, affecting a further 500 employees.

Economic situation

This means that the already announced measures and those now under discussion add up to several thousand jobs. According to the company, negotiations on an additional savings package are currently underway between management and employee representatives.

Porsche belongs to the Volkswagen Group and is in a deep earnings crisis. In 2025, according to the available figures, the company earned only €310 million in profit, down from €3.6 billion the previous year. Profit after taxes collapsed by 91.4 percent year-on-year. The reasons cited are the board's faltering electric strategy, the slump in the important Chinese market, lower demand for the E-models, and burdens from US tariffs.

Criticism at the annual general meeting

At the virtual annual general meeting at the end of June, shareholders had voiced sharp criticism. Ingo Speich of the fund company Deka said: "Wir Aktionäre blicken heute auf Porsche und sehen einen Scherbenhaufen". Among other things, Speich criticized that the former CEO Oliver Blume had been kept in an overburdening dual role for too long and that the failed electric strategy had not been sufficiently monitored. Personnel decisions had also been made too late.

Outlook

Porsche has had a new CEO since January. According to the report, observers are fundamentally positive about their restructuring measures, including the future package now under discussion. At the same time, Porsche announced that it would offer combustion-engine vehicles for longer than originally planned in order to respond to changed demand. Concrete details of the savings package are to follow by the end of July.

The further course of negotiations between management and employee representatives, as well as the official presentation of the future package at the end of the month, are considered the decisive next steps.