Porsche AG’s executive board and general works council have agreed on a far-reaching restructuring programme ahead of the launch of the company’s new ‘Sportwagenschmiede 35’ strategy programme in October. The measures respond to declining vehicle sales, particularly in China, the impact of US tariffs and billions invested in electrification that have yet to generate returns. In the first half of 2026, Porsche’s operating margin fell to 7.8%, a sharp decline from its historical level of profitability.
The core of the restructuring programme is the planned reduction of 5,000 jobs by 2035 at the Stuttgart-based carmaker. Porsche says the cuts will be implemented primarily through through retirements, voluntary departures and partial retirement, demographic change, partial retirement and voluntary termination agreements with severance payments. Including previously announced measures and reductions at subsidiaries, the total number of jobs affected will reach around 9,000. That includes 1,900 positions earmarked for elimination by 2030, announced in early 2025, as well as the decision not to renew 2,000 fixed-term employment contracts.
Employment guarantees until 2035
In return, management has extended employment guarantees for employees at the Zuffenhausen and Weissach sites until 2035, meaning Porsche has committed not to carry out compulsory redundancies for operational reasons during that period. Weissach is home to Porsche’s research and development centre, while Zuffenhausen near Stuttgart is the company’s historic production site and builds the Taycan alongside several sports-car models. The planned job cuts will affect both administrative and production roles.
