Porsche Cuts 9,000 Jobs in Restructuring Amid China Sales Collapse

The luxury carmaker Porsche AG announced a restructuring plan called the Future Package to cut approximately 9,000 jobs by 2035, representing roughly 20% of its workforce. This total includes a new commitment to eliminate 5,000 positions, following previous reductions of 3,900 jobs in February 2025 and 500 cuts related to subsidiary closures. The company intends to achieve these reductions through natural attrition, voluntary severance, and early retirement to avoid compulsory redundancies.

These measures respond to a plunge in operating profit, a stalled electric vehicle strategy, and a 26% drop in sales in China last year. To secure the agreement with labor representatives, Porsche pledged investments between 2.1 billion euros and 2.39 billion dollars for its Zuffenhausen and Weissach sites and extended plant location guarantees until 2035. In return, employees will face deferred pay increases, reduced Christmas bonuses, and stricter remote-work limits.

This restructuring occurs as parent company Volkswagen Group faces a 20% cost disadvantage relative to competitors. Volkswagen CEO Oliver Blume is pushing for up to 100,000 total job cuts across the broader group to maintain competitiveness, warning that four factories could face closure after 2030.