Porsche will eliminate about 9,000 jobs by 2035, roughly one in five of its workforce, as it deals with collapsing sales in China, a stalled electric strategy and weaker profits. The deal avoids compulsory redundancies and guarantees Porsche’s main German sites until the end of 2035.
The agreement
On 27 July 2026, Porsche management and employee representatives agreed to 5,000 additional job cuts. They build on 3,900 cuts agreed in February 2025 and about 500 more announced this year by CEO Michael Leiters, linked to the closure of subsidiaries. Porsche had a workforce of about 42,600 at the end of 2024.
Porsche confirmed the plan again at its investor day on 7 October 2026, where it presented a “value over volume” strategy aimed at rebuilding profit with fewer, more expensive cars.
How the cuts will happen
- No forced dismissals: reductions will come through natural attrition and voluntary departure schemes
- Site guarantees: Porsche’s main factory in Stuttgart-Zuffenhausen, where the 911 is built, and its Weissach development centre are guaranteed until the end of 2035
- New investment: €2.1 billion (approximately $2.4 billion, or approximately AED 8.8 billion) in those two sites
Trade press also reports that part of future pay rises for employees will be deferred until 2035, and that each employee receives a one-off €1,500 payment this August.
Why Porsche is cutting
Reuters says the cuts come as sales in China, once a very profitable market for Porsche, have collapsed, and its electric vehicle strategy has stalled. US import tariffs are an additional pressure. The company’s operating margin fell to 1.1% last year. Leiters became CEO at the start of 2026 with the job of overhauling the business.
What it means for Porsche buyers
Porsche says it will focus on top-end models, more personalisation and higher prices, and expects to sell fewer cars. The company has not said how the cuts will affect deliveries, service or models in the Middle East. The jobs affected are mainly in Germany.
What to watch
The jobs plan is part of a wider restructuring at Volkswagen Group, Porsche’s parent. UAE owners and enthusiasts will be watching for any changes to the models and options Porsche offers in the region as the new strategy takes shape.
Sources: Reuters via CNBC, 27 July 2026; Reuters via CNBC, 7 October 2026; just-auto (pay and one-off payment details). Currency conversion is approximate, at about 3.67 AED per USD.
