Job cuts described as a 'socially responsible reduction'
Porsche has announced that it will be cutting 5,000 jobs by 2035 under a newly unveiled corporate restructuring plan that will also see bonuses reduced and pay increases deferred.
The German car manufacturer said in a statement that it will carry out a "socially responsible reduction" of 5,000 jobs through demographic effects, the expansion of its special partial retirement program, and voluntary severance agreements.
Compulsory redundancies, according to Porsche, have been ruled out until the end of 2035.
The job cuts are part of a newly unveiled Future Package that was agreed upon by Porsche's Executive Board and the General Works Council, together with IG Metall and the Südwestmetall employers' association.
The package aims to "strengthen the competitiveness" of the sports car manufacturer and "secure as many jobs as possible" in the long term, according to Porsche.
"The Future Package is good for Porsche. It gives us the opportunity to strategically realign our company and invest in our competitiveness," said Porsche CEO Michael Leiters.
"We are laying the foundation for our 'Sportwagenschmiede 35' strategy with this Future Package. Now it is up to all of us to deliver. Because one thing is clear: only by achieving our goals and being economically successful, we can also give our employees the security they need."
Further reductions under Future Package
In addition to the job cuts, the Future Package will also see 3.5% of current and future collectively agreed pay increases deferred until 2035 for management and employees covered by the Porsche-specific pay framework.
Senior and top management will also waive an equivalent contribution from increases in basic remuneration in 2027 and 2028.
Christmas bonuses will also be reduced from up to 100 to 60% of a monthly salary, as Porsche's voluntary company share will fall from 45 to five per cent by 2035.
Mobile working will also be reduced from 12 days a month to just eight, while changes in the framework conditions for break-arrangements and production cycle times will be introduced.
Bonuses, benefits of Future Package
Despite these drawbacks, Porsche said the Future Package will introduce an IG Metall membership bonus in the future, which will include one additional day off per year as well as a voucher worth EUR200 per year.
Porsche will also pay employees a one-time transformation bonus of EUR1,500 in August 2026, while IG Metall members will receive a one-time increase in the transformation bonus of EUR411, adding up to EUR1,911.
Employment and site protection will also be extended until 2035, as Porsche commits a EUR2.1-billion investment to its Zuffenhausen and Weissach sites.
"The Future Package shows that transformation can be actively shaped in the interests of employees with strong works councils and a highly unionised workforce," said Tamara Hübner, Second Representative of IG Metall Stuttgart.
"The new membership bonus will make this tangible for members of IG Metall. The extension of employment and site protection until 2035 and the investments are an important signal for the entire workforce and for Baden-Württemberg as an industrial location."
The Future Package is intended to significantly reduce personnel costs and make work sites more flexible and productive, according to Porsche.
It comes in the wake of a challenging environment for the car maker amid declining sales volume, impact of high tariffs, and growing competition with Chinese rivals.
Porsche's parent company, Volkswagen, previously hinted that its workforce reduction can get up to 100,000 employees after CEO Oliver Blume said approximately 50,000 cuts would have to be made again after it calculated a 20% cost disadvantage relative to comparable companies.
