Porsche to Cut Additional 5,000 Jobs by 2035 in New Restructuring Deal

German automaker Porsche announced on Monday it will cut an additional 5,000 jobs by 2035 as part of a new, comprehensive restructuring agreement reached between management and labor representatives. The company stated the workforce reductions will be implemented in a socially responsible manner.

Expanded Workforce Reduction

The latest job cuts are part of a second restructuring package and significantly expand on previous announcements. These reductions are in addition to a prior plan to eliminate 3,900 positions and a separate cut of 500 jobs announced by CEO Michael Leiters earlier this year.

In a joint statement, the company and labor officials confirmed the agreement, which provides a long-term framework for the automaker's operational footprint and staffing levels over the next decade.

Investment and Location Guarantees

As a key component of the deal, Porsche committed to significant long-term investments in its domestic operations. The company will invest €2.1 billion in its Zuffenhausen and Weissach locations by 2035.

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In a concession to its workforce, Porsche also agreed to extend its plant location guarantees by five years, securing the future of these key sites until 2035. This measure provides long-term job security for the remaining employees.

Strategic Context

The restructuring package is a central pillar of Porsche's overarching "Strategy 2035." The automaker is repositioning itself for future challenges and technological shifts in the automotive industry, including the transition to electric vehicles.

Porsche indicated that it will provide further details on its strategic direction and the financial implications of the plan during its Capital Markets Day, which is scheduled for October.