Porsche may be preparing to dramatically expand its workforce reduction program, with German media reporting Wednesday that the luxury automaker is considering cutting another 5,000 jobs — potentially doubling the scale of its ongoing restructuring effort.
The figure was first reported by Manager Magazin, which cited unnamed sources familiar with the matter. Bild newspaper added that CEO Michael Leiters is reportedly planning to eliminate between 5,000 and 6,000 positions by the year 2035. A company spokesperson declined to provide any comment on the reports.
The news emerged as Porsche’s supervisory board convened to review restructuring options for the struggling automaker. Once among the most profitable divisions within the Volkswagen Group, Porsche has seen its margins deteriorate sharply — dropping from comfortable double-digit percentages to a mere 1.1% last year.
Several factors contributed to the financial decline, including weakening sales in the previously lucrative Chinese market, challenges stemming from tariffs, and a troubled electric vehicle strategy that cost the company billions of euros.
Porsche had already reached an agreement to cut 3,900 jobs. Labor representatives and company management have been working through negotiations on a second package of measures, which is expected to be formally announced within the coming week.
The broader Volkswagen Group, Porsche’s parent company, has cautioned that as many as 100,000 jobs could be eliminated across the entire organization as it works to become more cost-competitive. Additionally, four of the group’s German manufacturing plants face the possibility of closure in the years ahead.
