- Porsche is reportedly planning to cut another 5,000 jobs, adding to the previously announced 3,900 layoffs.
- In return, the remaining workforce is expected to have job security until 2035.
- The company is betting that its upcoming wave of new models will help reverse its sales decline.
To say that Porsche is in bad shape would be a gross understatement. The fall from a record 320,221 sales in 2023 to 279,449 units last year underlines the severity of the situation. Although I’m no forecaster, 2026 is likely to be even worse, with demand falling 15 percent in the first six months of the year. The situation is likely to get worse before it gets better.
The gas-powered Macan goes out of production this month, leaving a big hole in the company’s lineup. Its direct successor won’t be ready until 2028 at the earliest. Elsewhere, Porsche stopped making 718 models last October and won’t bring back the Boxster and Cayman until 2027 at the earliest. Two-door sports cars will return with revived combustion-engine versions with electric drivetrains, the latter of which may not be coming soon enough.
Meanwhile, Porsche is trying to gear up to improve its balance sheet before a wave of new models potentially changes things. In addition to the 3,900 layoffs already announced while Oliver Bloom was still in charge, further job cuts are likely in the coming years. german business newspaper automobilesCiting sources close to Zuffenhausen, the report reports that CEO Michael Leiters presented his future strategy to the supervisory board earlier this week, proposing around 5,000 additional layoffs.
Photo by: Porsche
This will result in a total cut of approximately 9,000 jobs. For context, Porsche’s workforce has already declined from 42,615 employees in 2024 to 41,780 last year. Apart from further layoffs, salary cuts are also possible. In return, remaining workers will be guaranteed job security until 2035, meaning operational layoffs will be put off until the middle of the next decade.
Deeper cuts are expected to focus on R&D, as Michael Leiters aims to reduce complexity. Porsche has already announced a close collaboration with Audi to accelerate the development of new models and spread costs, which will reduce the need for many employees in research and development. Nevertheless, the company still plans to expand its lineup beyond the return of the 718 and the new gas-powered crossover mentioned earlier. A three-row SUV is under development to slot above the Cayenne, while a new hypercar is still under consideration to replace the 918 Spider.
The additional job cuts at Porsche come as parent company Volkswagen Group is reportedly considering doubling its planned layoffs to about 100,000 jobs, according to an internal memo. reuters.
Motor1’s Opinion: It is clear that Porsche and the wider VW Group have no choice but to reduce size by cutting costs while giving priority to volume models and models with higher profit margins. With several key products missing from its lineup, Porsche’s short-term outlook appears challenging. At the same time, sales in China continue to decline, with domestic automakers continuing to gain ground, so there are no signs of improvement.
Source:
automobiles, reuters
