Porsche’s Second Restructuring Wave: 9,000 Jobs Cut for a Deal That Locks in Employment Through 2035
Published on 07/23/2026 at 05:43 | Redaktion boerse-global.de
Porsche AG’s supervisory board has signed off on a second round of deep cost-cutting, approving a plan that will eliminate thousands of jobs at the luxury carmaker’s German plants. In exchange, workers who remain will receive a rare guarantee: no involuntary layoffs until 2035.
The new measures, described internally as a second “future package,” call for between 5,000 and 6,000 additional job reductions. Combined with earlier steps — 1,900 socially compatible cuts already scheduled through 2029, the expiration of 2,000 fixed-term contracts, and the closure of three subsidiaries affecting 500 positions — the total comes to 9,000 jobs lost in Baden-Württemberg alone.
Most of the cuts will hit Porsche’s administrative and development divisions at its Zuffenhausen and Weissach sites. CEO Michael Leiters is pushing what he calls a full-scale overhaul, aiming to fortify the sports-car maker against shrinking profit margins.
Workers Trade Bonuses for Job Security
The employment guarantee through 2035 did not come cheap for the workforce. Under the deal negotiated between management and labor representatives, employees will see their special payments capped at €1,500 and their Christmas bonuses reduced. The trade-off includes expanded home-office options.
Workers are expected to learn the full details of the restructuring in the coming days. A company-wide meeting is scheduled for July 27, where management will brief staff on the scope of the cuts.
Profit Collapse and China Slump Drive the Urgency
Porsche’s aggressive cost-cutting follows a brutal year for earnings. In fiscal 2025, operating profit plunged 92.7 percent to €413 million. The operating margin stood at 6 percent, and the company now forecasts a corridor of 5.5 to 7.5 percent for 2026.
The downturn in China has been especially punishing. Global deliveries dropped 16 percent in the first half of 2026, to 122,306 vehicles. The stock has fared no better: since its 2022 initial public offering, Porsche shares have lost roughly 45 percent of their value. Short sellers are betting on further declines.
Porsche will publish its full half-year results on July 29, followed by a capital markets day on October 7.
Ripples Through the Volkswagen Empire
The severity of Porsche’s restructuring is raising pressure on its parent company, Volkswagen Group. While Porsche secured a site guarantee until 2035 in exchange for job cuts, reports suggest that Volkswagen’s core brand faces even tougher measures. Across the group, up to 100,000 jobs could be at risk, with some estimates pegging the number of threatened positions at a minimum of 50,000.
Industry analysts see the Porsche deal as a potential shift in power dynamics within the conglomerate. Porsche is pursuing a restructuring without plant closures, but similar measures are looking increasingly likely for other parts of the group. Leiters has stressed that the company’s future focus must be on high-margin models such as the 911 and luxury SUVs.
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