Porsche plans 5,000 more job cuts, taking total reductions to 8,900

German luxury sports carmaker Porsche said on Monday that it would cut a further 5,000 jobs by 2035 as part of a strategic realignment aimed at improving competitiveness.

Including reductions announced last year, the Volkswagen Group subsidiary plans to cut 8,900 positions from a workforce of more than 30,000.

Porsche said the latest reductions would mainly be achieved through natural attrition, demographic changes, expanded partial-retirement programmes and voluntary severance agreements.

The maker of the 911 sports car also said it would invest a total of €2.1 billion by 2035 in its Zuffenhausen and Weissach plants near Stuttgart.

Workers at the two sites will receive employment and site protection until 2035 following negotiations with the company’s general works council and trade unions.

Porsche also announced additional cost-cutting measures, including postponing wage increases until 2035. Senior executives will forgo increases to their base salaries in 2027 and 2028.

The company has been affected by falling sales in China, US tariffs and costs associated with slowing its transition to electric vehicles.

Porsche said last year that it would delay some fully electric models and extend the production life of some combustion-engine and hybrid vehicles.