Porsche is reportedly preparing another round of workforce reductions as the luxury carmaker intensifies efforts to restore profitability amid rising costs, weaker demand and challenges in key markets.
Reuters reports suggest that Porsche management is planning to eliminate an additional 5,000-6,000 positions as part of a broader restructuring programme.
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The proposed cuts would increase Porsche's total planned workforce reduction to around 9,000 jobs. The latest measures would come on top of approximately 3,900 redundancies already agreed under former CEO Oliver Blume. According to reports, current CEO Michael Leiters is targeting the additional reductions by 2035, as per Reuters.
Porsche's supervisory board has backed the next phase of the restructuring initiative, although the company has not confirmed the exact number of job cuts. A Porsche spokesperson said discussions on the future restructuring package are continuing, with further details expected to be presented to employees. "Now it's time to finalise the last steps," the spokesperson wrote in an email retrieved by Reuters.
The restructuring comes as Porsche faces significant financial pressure. The company, once among the most profitable brands within the Volkswagen Group, has seen its operating margins decline sharply, reportedly falling to around 1.1 per cent. The decline has been linked to weaker sales in China, increased tariff-related costs and difficulties surrounding its electric vehicle (EV) strategy.
Implementing these cuts at Porsche could spark serious controversy, particularly as four German manufacturing plants belonging to VW and its luxury brand, Audi, already face the threat of closure over the next decade under Blume's leadership.
As part of its turnaround plan, Porsche aims to reduce costs, simplify operations and focus on its high-margin vehicle portfolio, including its iconic sports cars and luxury SUVs. The company is also reviewing its strategy to adapt to changing global automotive trends and increasing competition.
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