Porsche to cut 5,000 more jobs by 2035 as part of competitiveness plan

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 to improve competitiveness.

The Volkswagen Group subsidiary said the reductions would mainly come through natural attrition, demographic changes, expanded partial-retirement programmes and voluntary severance agreements.

Including job cuts announced last year, Porsche said it planned to reduce its workforce of more than 30,000 by 8,900 people.

The maker of the 911 sports car also said it would invest a cumulative 2.1 billion euros by 2035 in its Zuffenhausen and Weissach plants near Stuttgart. It said workers at the sites would have employment and site protection until 2035 after talks with the general works council and trade unions.

Porsche also announced other cost-cutting measures, including deferring wage increases until 2035 and having senior executives forgo base salary increases in 2027 and 2028.

The company has been hit by falling sales in China, US tariffs and costs linked to slowing its shift to electric vehicles. Porsche said last year it would delay some fully electric models and extend the life of some combustion-engine and hybrid models.