Porsche Cuts 6,000 Jobs in Exchange for Unprecedented Job Guarantee Until 2035
Published on 07/22/2026 at 23:21 | Redaktion boerse-global.de
Porsche’s supervisory board has approved a sweeping cost-cutting plan that will eliminate thousands of positions while granting remaining staff an unusually long job guarantee—a move already stirring tension within the wider Volkswagen Group.
The restructuring targets 5,000 to 6,000 additional job cuts, primarily at the company’s Zuffenhausen and Weissach sites, with administration and development bearing the brunt. Combined with an earlier reduction program, Porsche will shed roughly 9,000 roles across Baden-Württemberg.
Previously, the carmaker had already agreed to cut 1,900 positions by 2029 through natural attrition. Another 2,000 temporary contracts are expiring, and three subsidiaries with around 500 employees are being shut down.
In return, worker representatives secured an extension of employment guarantees through 2035—a deal that labor leaders call historic but that has raised eyebrows in Wolfsburg, where VW is negotiating plant closures and restructuring.
Bonuses and Holiday Pay Take a Hit
The savings package also targets compensation. Above-tariff allowances are being scrapped, Christmas bonuses reduced, and special payments capped at 1,500 euros. The 2025 employee bonus has been eliminated entirely.
On the upside, home-office policies are being expanded, and the so-called Steinkühler break—a paid pause for shift workers—remains intact. CEO Michael Leiters had signaled a leaner structure earlier this year; the board’s decision now puts concrete measures in place, including streamlined production processes.
Profit Plunges 93 Percent
The cuts come against a stark financial backdrop. Porsche’s operating profit (EBIT) collapsed by 92.7 percent in 2025, falling to just 413 million euros. Revenue dropped 9.5 percent to 36.3 billion euros.
The outlook for 2026 remains bleak. Global deliveries fell 16 percent in the first half to 122,306 vehicles. The situation is particularly acute in China, where Porsche expects to sell fewer than 30,000 cars this year.
Investor sentiment has soured accordingly. Since its 2022 IPO, Porsche’s share price has lost roughly 45 percent. Analysts report heavy speculative activity against the company—one in four freely traded shares is subject to short selling. Porsche has already halved its production capacity from 400,000 to 200,000 vehicles.
Supersportscar on the Horizon
Management is betting on a strategic pivot through 2035. Details are expected at a capital markets day in October, with a target return of 10 to 15 percent. Christian Friedl will take over as production chief.
Notably, electric-vehicle and software projects have been paused for now. Instead, Porsche plans a new supersportscar codenamed “S1” for 2031, positioned above the 911 lineup.
Tensions Brewing with VW Parent
The job guarantee through 2035 is already creating friction within the Volkswagen Group. In Wolfsburg, talks over factory closures and restructuring are ongoing—and Porsche’s far-reaching commitment to its workforce is seen as complicating those negotiations.
Porsche employees are expected to receive full details of the agreement at a works meeting scheduled for next Monday.
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