According to a report by Reuters, Porsche will cut an additional 5,000 jobs after the company’s management and labour representatives recently concluded months of negotiations. This comes after the first round of job cuts affecting 3,900 personnel in February last year, with another 500 this year linked to the closure of subsidiaries.
By 2035, one in five positions will be cut, with about 9,000 positions to be axed in total as parent Volkswagen Group and its brands undergo a restructuring exercise in the wake of weak demand and stiff competition. With the company revealing via its latest sustainability report that it had 42,066 employees during fiscal year 2025, the job cuts represent about 21% of its workforce.
Former McLaren CEO Michael Leiters, who was appointed to lead Porsche starting January 2026, was tasked with overhauling the business after sales in China – one of Porsche’s most lucrative markets – declined. The brand’s electric vehicle (EV) strategy is also facing its fair share of challenges with weaker-than-expected demand.
As part of a deal announced on Monday (July 27, 2026), Porsche has guaranteed to keep sites open for another five years, until the end of 2035, as well as invest 2.1 billion euros (about RM9.8 billion) in its main factory of Stuttgart-Zuffenhausen and its R&D centre in Weissach.
Porsche Cayenne Coupe
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