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German automaker Porsche has announced plans to cut 5,000 jobs by 2035 as the luxury carmaker moves to improve its competitiveness following falling sales and rising costs.
The German sports car manufacturer, which is part of the Volkswagen Group, made the announcement on Monday as part of a long-term restructuring plan. The company said the job cuts would be carried out through natural attrition, retirements, voluntary severance agreements and expanded partial retirement programmes.
Combined with workforce reductions announced last year, Porsche plans to reduce its workforce by about 8,900 employees from its current staff of more than 30,000. The company said the move is targeted at strengthening its long-term competitiveness while protecting jobs where possible.
“The shared objective is to strengthen the competitiveness of the sports car manufacturer and secure as many jobs as possible in the long term,” Porsche said.
As part of its “future package,” Porsche will also invest €2.1 billion ($2.4 billion) in its Zuffenhausen and Weissach plants near Stuttgart by 2035.
Employees at both sites will have job and site protection until 2035 following agreements with labour unions.
The company also announced additional cost-saving measures, including delaying wage increases until 2035 and freezing base salary increases for senior executives in 2027 and 2028.
Porsche has faced declining profits due to weak sales in China, where local electric vehicle brands have gained market share, as well as the impact of U.S. tariffs and higher costs linked to its electric vehicle strategy.
Last year, the automaker slowed its transition to electric vehicles by delaying some fully electric models and extending the production of selected petrol and hybrid vehicles after demand for EVs fell short of expectations.
