Severe crisis at Porsche: The company is cutting 9,400 jobs
Following a staff meeting, the supervisory board of the famous German automotive giant Porsche AG announced that an additional 5,000 jobs will be cut within the company. Combined with previously announced reductions, this will directly affect the fate of thousands of employees.
Zamin.uz presents the drastic decisions made by Porsche's management to save costs, salary restrictions, and the causes of the financial crisis the automotive giant is facing.
1. Over 9,400 jobs to be cut by 2035
According to the new decision adopted by the Porsche supervisory board on July 27, another 5,000 employees will be laid off. Prior to this, in accordance with the "Future Pact" program adopted in 2025, it was planned to lay off 3,900 employees at Porsche and 500 at its subsidiaries.
Thus, the total number of jobs to be cut at the company by 2035 is expected to exceed 9,400.
Affected regions: The cuts will mainly apply to employees at the main plant in Stuttgart-Zuffenhausen and the research and development center in Weissach.
Reuters estimate: According to calculations by the Reuters agency, these cuts will affect nearly every fifth job in the company.
From Porsche management's statement:
«The cuts will be carried out in a "socially responsible manner" — primarily through natural staff turnover, employee retirements, and voluntary severance agreements. The main goal is to increase the company's competitiveness and secure the remaining jobs for the long term.»
2. Salaries to be reduced, remote work regime restricted
To optimize costs, Porsche is also making serious changes to working conditions and social packages:
Salary increases restricted: 3.5 percent of the planned collective bargaining salary increases will be withheld.
Christmas bonus reduced: The holiday bonus will be lowered from 100 percent to 60 percent of a monthly salary.
Remote work decreased: Employees' opportunity to work from home will be restricted from 12 days to 8 days per month.
Exceptions and allowances: Members of the IG Metall trade union are slated to receive an additional annual bonus of 200 euros, plus a 411 euro allowance in addition to a one-time 1,500 euro payment under the transformation program.
Changes and key indicators at Porsche
Indicator / Aspect | Details and figures |
Total cuts (by 2035) | Over 9,400 jobs |
New wave of cuts | 5,000 jobs |
Previous plan ("Future Pact") | 3,900 (Porsche) + 500 (subsidiaries) |
Investment in production | 2.1 billion euros (by 2035) |
Drop in net profit for 2025 | Decreased by 91 percent (310 million euros) |
Christmas bonus | Reduced from 100% to 60% |
Remote work regime | Reduced from 12 days to 8 days per month |
3. What is behind the crisis? (China, tariffs, and electric vehicles)
Porsche has been under severe financial pressure in recent years. The company's net profit in 2025 unexpectedly dropped by 91 percent, amounting to only 310 million euros. This negative trend continued in the first quarter of 2026 as well (although the pace of decline slowed slightly).
3 main causes of the crisis:
Weak sales in the Chinese market: A sharp drop in demand in China, one of the largest markets.
US customs barriers: An increase in import tariffs by the United States.
Electric vehicle costs: Massive investments made in the production and development of electric vehicles have not yet yielded the expected economic returns.
At the same time, the company plans to reinvest 2.1 billion euros by 2035 in order to secure the future and preserve production sites.
Send this important economic and automotive news to your friends!
This major crisis in the German and European automotive industry could significantly impact the global market and the future of electric vehicles.
Immediately send this article to your friends, colleagues, and car enthusiast groups!
Do you think premium brands like Porsche will be able to maintain their positions during the transition to electric vehicles? Leave your opinion in the comments!
Comments 0
…