Porsche to swing the axe on its workforce again
Almost 9000 Porsche employees are set to be cut as the iconic brand prepares for a financial turnaround.
Porsche has already announced it’s making 3900 positions redundant, and now reports claim it could add a further 5000 to that tally in an attempt to repair its finances.
As reported by Automotive News, approximately 8900 Porsche employees in Germany will be cut from the brand’s payroll in Germany by the end of 2035, representing a significant reduction in its current local workforce of 23,000 staff.
The plan has reportedly been approved by Porsche’s supervisory board, after it was put forward by CEO Michael Leiters in response to growing financial concerns within the Stuttgart-based carmaker.
Automotive News reports the additional 5000 job cuts will occur through “natural attrition, early retirement and voluntary severance”, and will likely impact administration and R&D roles within Porsche.
The publication says Porsche’s development centre in Weissach – where some of the brand’s most iconic road and race cars have been developed – is most likely to be impacted.
Leiters has previously said Porsche needs to get to a point where it sells only about 180,000 vehicles a year to break-even. Though it is currently profitable after selling almost 280,000 cars in 2025, there have been significant changes to its business model recently.
Last year, Porsche made a U-turn on its EV plans, a move which reportedly cost its Volkswagen Group parent €5.1 billion ($9.1 billion), while the Stuttgart brand projected its operating profit would drop by €1.8 billion ($3.2 billion) in the 2025 financial year.
Jordan Mulach
It still was able to make an operating profit in 2025 of €90 million (A$146 million), though this was a reduction of 98 per cent compared to its previous turnover of €5.3 billion (A$8.7 billion).
To boost profitability, there are a handful of vehicles on the horizon, such as the return of a Macan-sized SUV with an internal combustion engine, a large three-row SUV, and a new flagship supercar, a successor to the 918 Hybrid and Carrera GT.
“We are considering the expansion of our product portfolio in order to grow in higher-margin segments. In doing so, we are looking at models and derivatives both above our current two-door sports cars and above the Cayenne”, Leiters said earlier this year.
Jordan Mulach
Porsche has been shuffling its future product plans in the wake of changing consumer demand globally, having last year confirmed the new 718 (Cayman and Boxster) won’t go EV-only as first intended.
Instead, Porsche said it would expand the 718 lineup to offer “top ICE (internal combustion engine) derivatives”, suggesting the flagship RS versions of each would be the only versions to get a petrol engine.
However, earlier this month German newspaper Bild reported the Volkswagen Group is eyeing up the discontinuation of more than half a dozen models, which includes the internal combustion engine-powered 718 (Boxster and Cayman twins).
