Porsche AG will eliminate roughly 9,000 positions by 2035 after announcing plans to cut a further 5,000 jobs, as the German luxury carmaker confronts weakening electric-vehicle demand and mounting pressure in key markets including China.
The latest reductions build on approximately 4,000 cuts already outlined by the Stuttgart-based manufacturer, bringing the total to about 9,000 roles over the next decade. The bulk of the reductions are expected to fall on the company’s German operations.
The move underscores the deepening challenges facing premium automakers as the transition to electric mobility unfolds more slowly than many had anticipated. Porsche has repeatedly recalibrated its EV ambitions in response to softer demand and intensifying competition.
China, long one of Porsche’s most important markets, has proven particularly difficult as domestic manufacturers roll out increasingly sophisticated and affordable electric models. The company has been adjusting its strategy accordingly, including plans to introduce a China-exclusive infotainment system in 2026 to better tailor its offerings to local buyers.
Financial strain has become increasingly visible. Earlier in the year, Porsche issued a profit warning that sent its shares tumbling, reflecting investor concern over margins and the pace of the electric transition.
The restructuring reflects a broader trend across Europe’s automotive sector, where legacy manufacturers are trimming payrolls to protect profitability. Rival groups have also announced significant workforce reductions as they grapple with rising Chinese competition and shifting consumer preferences.
Porsche has said it intends to carry out the reductions without compulsory redundancies, relying instead on measures such as natural attrition, early retirement and voluntary departures. Such approaches are common in Germany, where labour protections and works councils play a central role in workforce decisions.
The scale of the cuts signals a more cautious posture from a company that has long positioned itself at the premium end of the market and enjoyed strong margins relative to mass-market peers.
The reductions are expected to be phased in gradually through 2035, giving the company room to align staffing with production volumes and evolving product plans. Porsche has indicated that the changes are part of a wider effort to safeguard long-term competitiveness as the industry undergoes structural change.