Luxury carmaker Porsche to cut 9,000 jobs by 2035

German luxury automaker Porsche has announced a sweeping restructuring plan that will eliminate 9,000 jobs by 2035, marking one of the company's biggest workforce reductions in recent years. The move comes as the sports car manufacturer faces slowing global demand, rising production costs, and increasing competition in the electric vehicle market.

The agreement, reached after months of negotiations between management and labor representatives, avoids compulsory layoffs by relying on voluntary departures, retirement schemes, and natural attrition. The latest decision adds to thousands of job cuts already announced over the past two years, reflecting the company's broader effort to streamline operations and restore profitability. Porsche has been particularly affected by weakening sales in China, once one of its strongest markets, where demand for premium vehicles has slowed amid intense competition from domestic EV makers. CEO Michael Leiters has been tasked with reshaping the company for a more competitive future while maintaining Porsche's premium brand identity. Analysts say the planned workforce reduction closely mirrors the company's decline in sales volumes and is aimed at improving long-term financial performance. The restructuring is part of a wider transformation across the Volkswagen Group, which is also pursuing major cost-cutting initiatives as it adapts to the global shift toward electric mobility. Reports suggest Volkswagen is planning to reduce tens of thousands of jobs and scale back investments as it confronts slowing growth and fierce competition from Chinese manufacturers.

Despite the workforce cuts, Porsche has committed to investing more than €2.1 billion in its Stuttgart-Zuffenhausen production facility and its Weissach research and development center, while guaranteeing operations at both sites through the end of 2035. Company executives say these investments will strengthen innovation and secure the brand's future despite the challenging market environment. The restructuring also highlights the broader pressures facing Europe's automotive industry, where manufacturers are balancing rising development costs, stricter emissions regulations, and uncertain consumer demand. Industry experts believe automakers must become leaner and more efficient to remain competitive in the coming decade.

While the job reductions represent a difficult chapter for employees, Porsche maintains that the measures are essential to safeguard its long-term sustainability. The announcement underscores how even some of the world's most profitable luxury carmakers are being forced to rethink their business models as the automotive sector undergoes its biggest transformation in generations.