(STUTTGART, GERMANY) – Porsche will cut an additional 5,000 positions at its operations in the Stuttgart region by 2035 as the German sports car maker pushes to bring down personnel costs and reshape its workforce for a more flexible and productive future.
The latest reduction forms part of a wider package agreed between the company and its general works council. In a joint statement, the two sides said the measures are designed to significantly lower staff expenses while making operations at the company’s facilities more adaptable. The cuts will fall on the main plant in Stuttgart and the research and development centre in nearby Weissach.
Combined with previously agreed job reductions, the total number of positions set to go across the group reaches about 8,900. A further 500 posts will be removed at subsidiary businesses, as announced earlier.
Porsche has said the workforce reduction will be carried out without compulsory redundancies. The company intends to rely on natural staff turnover, demographic shifts, early retirement offers and voluntary termination agreements to achieve the headcount target.
The IG Metall trade union and the Südwestmetall employers association both took part in the negotiations that produced the deal. The agreed package is framed as a way to strengthen Porsche’s competitive position and to protect as many jobs as possible over the long run. It also includes an investment commitment of EUR 2.1 billion (USD 2.28 billion, GBP 1.80 billion). Those funds are intended in part to secure the continuation of two door sports car production at the Stuttgart site and to keep core research activity at Weissach.
At the end of 2024, Porsche employed about 22,200 people in the Stuttgart area. A year later that figure had fallen to roughly 20,600. The group’s total global workforce stood at almost 41,800 employees at the close of 2025.
The job cuts come against a difficult financial backdrop. Net profit at Porsche fell 91 percent to EUR 310 million (USD 337 million, GBP 266 million) for the 2025 financial year. The company pointed to weak performance in the Chinese market and the cost burden of United States import tariffs as key factors behind the slump.
The restructuring at Porsche mirrors wider cost cutting moves across the German auto sector. Fellow Volkswagen Group brand Volkswagen is considering the reduction of up to 50,000 additional jobs worldwide as part of a major reorganisation to lower expenses sharply.