Porsche reached an agreement with its works council establishing the reduction of more than 5,000 positions by 2035. Added to previous layoffs, this represents about 9,000 vacancies, equivalent to approximately one in five jobs at the automaker, which ended 2024 with 42,600 employees.
Details of the Labor Agreement
This announcement was formalized on Monday (27), after months of negotiations between the company, the IG Metall union, and the employer association Südwestmetall. Porsche clarified that none of the departures will be forced dismissals, as the reduction will occur through natural retirements, demographic effects, expansion of the partial retirement program, and voluntary severance agreements.
In return, Porsche guaranteed the maintenance of jobs and factories until the end of 2035. Furthermore, the company committed an investment of €2.1 billion in the Stuttgart-Zuffenhausen unit, where two-door sports cars are manufactured, and in the Weissach development center.
Compensation and Salary Adjustments
In exchange, employees accepted the postponement of 3.5% of the already negotiated salary increase and future increases until 2035. Senior management will also waive an equivalent contribution in the years 2027 and 2028. The Christmas bonus benefit will be reduced, going from 45% to 5% voluntarily until 2035, decreasing the maximum benefit from up to 100% to 60% of a monthly salary. Additionally, the home office regime will change from 12 days per month to eight.
As immediate compensation, the manufacturer will offer a transformation bonus of €1,500 to each employee in August. IG Metall members will receive an additional €411, totaling €1,911, along with one extra day off annually.
Economic and Strategic Factors
The package of measures comes during a challenging period for the company. Between January and June, Porsche recorded 122,306 deliveries, representing a 16% decrease compared to 2025. Specifically in China, sales fell by 32%, reaching 14,501 units, a number lower than that registered in Germany, which reached 14,938.
The company attributes this global contraction to the discontinuation of the combustion engine 718 model, the strong comparison base of the electric Macan, and the end of tax subsidies for electrified vehicles in the United States. Michael Leiters took over leadership in January with the task of restructuring the business. In the semi-annual balance sheet, released on Wednesday (29), revenue fell to €17.23 billion, although operating income increased by 34%, reaching €1.35 billion, maintaining the annual forecast. Chief Financial Officer Jochen Breckner warned that the new layoff plan will impact several hundred million euros in the second half of the year. Details of the strategy until 2035 will be presented in October, during the company's Capital Markets Day.



