Porsche will eliminate a further 5,000 positions by 2035, bringing total planned job cuts to 8,900—roughly one in five of its workforce—under an agreement with labour representatives that extends site guarantees and bars compulsory redundancies for a decade. The Stuttgart-based manufacturer, a subsidiary of Volkswagen, simultaneously committed €2.1 billion in investment to its Zuffenhausen assembly plant and Weissach development centre, locking in production of the 911 and Taycan models in Germany.

The reductions are to be achieved without forced layoffs, relying instead on natural attrition, demographic turnover, expanded partial-retirement schemes and voluntary severance packages. A suite of accompanying cost measures includes deferring 3.5 per cent of agreed wage increases until 2035, cutting Christmas bonuses, tying variable pay more tightly to company results, and limiting remote working to eight days a month. Senior executives will forgo base-salary rises in 2027 and 2028. The package, negotiated with the IG Metall union and the Südwestmetall employers’ association, is designed to preserve as many long-term jobs as possible while restoring competitiveness.

The cuts are a direct response to a collapse in profitability driven chiefly by plunging sales in China, where domestic electric-vehicle brands have seized market share. Porsche’s costly and now-slowed push into EVs, combined with the drag of US tariffs, has compounded the pressure. The retrenchment mirrors a wider crisis across the Volkswagen group: Audi is eliminating up to 7,500 roles by 2029, and group-wide job reductions could reach 100,000, according to analysts tracking the restructuring. VW chief executive Oliver Blume—who also chairs Porsche’s supervisory board—has warned that four group factories, including an Audi plant, risk closure after 2030, though he describes shuttering sites as a last resort.

The agreement locks in employment conditions until the end of 2035, providing a decade of planning certainty for the workforce. The next concrete milestone will be the pace at which the voluntary exit programmes are taken up, and whether the group’s broader cost-saving targets—still being negotiated across multiple brands—can be met without triggering the factory closures that management has so far sought to avoid.