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Porsche agrees to additional job cuts, totaling 9,000 by 2035
Porsche also secured site guarantees through 2035, alongside 2.1 billion euros of investments in its Stuttgart-Zuffenhausen main factory and Weissach R&D center.
German luxury automaker Porsche said it will cut a total of 9,000 jobs by 2035 as it restructures amid weak demand and intense competition, according to Reuters.
Reuters reported that Porsche management and labor representatives agreed to 5,000 additional job cuts under the deal, designed to avoid compulsory redundancies through natural attrition and voluntary schemes. The new plan follows earlier job cuts of 3,900 and another 500 announced by Porsche under its new CEO Michael Leiters.
The restructuring comes as Leiters, who took over at the start of the year, was tasked with overhauling the business after Porsche’s once strong China performance deteriorated and its EV strategy stalled, Reuters said.
Reuters added that the agreement includes guarantees to keep Porsche sites open for another five years, through the end of 2035, and includes 2.1 billion euros in investments in the Stuttgart-Zuffenhausen factory and the Weissach R&D center. The company said the announcement followed approval from Porsche’s supervisory board committee.
The Reuters report also noted that Volkswagen CEO Oliver Blume remains in charge of the parent company and is pushing for total job cuts across the group to reach 100,000, while warning some factories, including an Audi plant, could face closure after 2030.