Porsche cuts 5,000 more jobs, ~8,900 total since last year

Herz — Business Desk · 27 July 2026 at 13:05 · 30s summary · 2 min read

What we know

Porsche and its works council (Betriebsrat) announced on July 27, 2026, at an employee assembly at the historic Stuttgart-Zuffenhausen factory, the elimination of 5,000 additional jobs. Adding the previous year's measures, the total reaches approximately 8,900 positions, according to Handelsblatt.

These departures will occur without forced layoffs. The automaker will rely on natural attrition, partial early retirement (Altersteilzeit), and voluntary separation agreements (Aufhebungsverträge). Some 500 additional positions will also be cut in group subsidiaries.

In return, Porsche extends the guarantee to maintain its facilities through end-2035 and commits to investing €2.1 billion in the Zuffenhausen plant and Weissach development center.

Context: a crisis on multiple fronts

Porsche is facing a crisis driven by collapsed Chinese sales, high US tariffs, and disappointing returns on its electric vehicle models.

Porsche is a Volkswagen subsidiary and part of the MDax—the German stock index comprising 50 mid-cap companies that immediately follow the 40 largest in the DAX. The automaker historically posted margins of around 15%, making it Germany's most profitable car manufacturer and the VW Group's primary cash generator, alongside Audi.

Porsche's workforce had surged 75% since 2015, reaching approximately 42,000 employees before the current job cuts began.

Timeline

1. Since 2015
   Porsche's workforce increased 75%, reaching approximately 42,000 employees.
2. 2024
   Porsche posted operating profit of €5.6 billion.
3. 2025
   Operating profit fell to €413 million. A first wave of job cuts was announced.
4. April 2026
   Porsche projected 250,000 vehicle sales for 2026, far below the ~320,000-unit record set three years earlier.
5. Porsche generated profit of €1.35 billion, at a margin of 7.8%.