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On Monday, Porsche announced that it will eliminate another 5,000 jobs by 2035 after reaching an agreement between management and labour representatives following months of discussions. The decision comes as the wider Volkswagen Group works to steady its business amid weak EV demand and intensifying competition in markets such as China, both of which have severely hurt the group’s overall profitability.

These cuts, which form part of what the brand is calling the “Future Package”, mark the latest round of workforce reductions at the Stuttgart-based carmaker. Around 3,900 employees were let go in February 2025, while a further 500 lost their jobs because of subsidiary closures. This latest phase of cutbacks is aimed at lowering personnel costs while improving flexibility and productivity across its plants. Porsche said the job reductions will be handled in a socially responsible manner, with a large share coming through natural attrition and retirements. The company is also widening its voluntary severance arrangements and special partial-retirement programmes.

The job cuts do, however, come with certain assurances for the employees who remain. Porsche has agreed to keep all of its production sites operational through 2035, while also committing an additional $2.39 billion to infrastructure at Stuttgart-Zuffenhausen and Weissach under the Future Package agreement. More details on the broader plan are expected during the company’s Capital Markets Day in October, but the carmaker has already indicated that its future strategy will include an expansion of the Sonderwunsch programme, which allows customers to go far beyond the usual options list with highly personalised requests.

“The Future Package is good for Porsche. It gives us the opportunity to strategically realign our company and invest in our competitiveness,” said Dr Michael Leiters, chairman of the executive board of Porsche AG. “With this Future Package, we are laying the foundation for our ‘Sportwagenschmiede 35’ strategy. Now it is up to all of us to deliver. Because one thing is clear: only by achieving our goals and being economically successful can we also give our employees the security they need.”

Although reducing headcount is never easy for any company, Porsche employees appear to be in a somewhat better position than some of their Volkswagen counterparts. Volkswagen Group CEO Oliver Blume has already made it clear that major changes are on the way for the automotive giant, with as many as 100,000 jobs potentially at risk as Volkswagen evaluates the future of several production facilities in Germany. Porsche’s future model range is also said to be in a state of uncertainty at present, with vehicles such as a second-generation Taycan, combustion-powered 718 twins, and the Cayenne Coupe all reportedly under question. The hope is that these challenges do not affect the brand’s ability to continue building the sports cars it is known for.