Porsche to Cut 9,000 Jobs by 2035 as China Sales and EV Strategy Falter

Porsche will cut around one in five jobs by 2035, bringing planned reductions to roughly 9,000 positions, after management and labour representatives agreed to 5,000 additional cuts following months of negotiations. Announced on July 27, the measures avoid compulsory redundancies, relying instead on natural attrition and voluntary schemes, and build on an earlier package of about 3,900 cuts agreed in early 2025 plus roughly 500 tied to closing subsidiaries. The deal also includes guarantees to keep German sites open until the end of 2035 and about 2.1 billion euros of investment in the company's main Stuttgart-Zuffenhausen plant and its Weissach research centre. The restructuring reflects a severe downturn: Porsche's operating margin collapsed from about 14% in 2024 to roughly 1% in 2025, net profit fell sharply, and vehicle sales dropped to their lowest since 2020, with deliveries in China, once its biggest market, down about 26%. Chief Executive Michael Leiters is steering a shift toward fewer, higher-margin models after a costly reversal of the brand's electric-vehicle push, while parent Volkswagen presses for even deeper group-wide cost cuts.