Porsche is set to eliminate about 9,000 jobs in Germany by 2035, marking a steep rise from previous layoffs as the company struggles with plunging profits and a challenging shift to electric vehicles. This represents nearly 40% of its 23,000-strong German workforce.
Profit Plunge and Market Challenges
In the first half of 2026, Porsche’s net profits fell over 90%, while vehicle sales dropped 15%. The luxury automaker’s push toward electrification has been costly, hitting profitability harder than expected. CEO Michael Leiters, who took charge in 2025, inherited these difficulties, with Porsche already having closed three subsidiaries earlier in the year, cutting more than 500 jobs.
Impact on Workforce and Industry
The job cuts will mostly affect administrative and R&D roles. Porsche plans to manage these reductions through voluntary severance, early retirement, and attrition, avoiding forced layoffs for now. Employees who stay can expect job security guarantees until 2035.
Declining demand from China has played a significant role in this downturn. Chinese consumers, who greatly boosted luxury vehicle sales over the past decade, are retreating, influenced by shifting capital flows and the rise of domestic EV brands challenging European automakers. This drop not only affects Porsche directly but also ripples through suppliers and local economies relying on the company’s spending power.
