Porsche Will Cut 5,000 More Jobs — and Spend €2.1 Billion to Keep the 911 Made in Germany

Porsche AG's Executive Board and General Works Council agreed on a "Future Package" on July 27: a cumulative €2.1 billion investment in the Zuffenhausen and Weissach sites running through 2035, paired with the elimination of 5,000 additional jobs by the same year. The cuts are meant to happen through natural attrition, demographic turnover, an expanded partial-retirement program, and voluntary severance agreements — Porsche and the works council extended job and site protection through the end of 2035, ruling out compulsory redundancies for operational reasons during that window.

The investment is earmarked to secure production of Porsche's two-door sports cars — the 911 among them — at Zuffenhausen, while keeping development for every model line concentrated at Weissach, and to expand the Sonderwunsch bespoke-order program. It's part of what Porsche is calling its "Sportwagenschmiede 35" strategy. "The Future Package gives us the opportunity to strategically realign our company," CEO Michael Leiters said in the announcement. Works council chair Ibrahim Aslan framed the deal as trading near-term compensation for longer-term site security.

That security comes with real costs for Porsche's workforce. Collectively agreed pay increases will be deferred by 3.5% until 2035 for both management and covered employees, with senior and top management waiving an equivalent amount of compensation in 2027 and 2028. The voluntary company-paid share of the Christmas bonus shrinks from 45% down to 5% by 2035, and mobile working is capped at eight days a month, down from twelve. In exchange, IG Metall union members get one additional day off per year, a €200 voucher, and a one-time transformation bonus of €1,500 — €1,911 for IG Metall members specifically.

This is not Porsche's first round of cuts. The company agreed to an initial package of 3,900 job reductions in February 2025, added another 500 tied to closing subsidiaries, earmarked 1,900 more positions for elimination by 2030 in a separate early-2025 announcement, and chose not to renew roughly 2,000 fixed-term contracts. Layered together with this week's 5,000, the total jobs affected by Porsche's restructuring since early 2025 comes to around 9,000 — against a workforce of roughly 42,600 at the end of 2024. The pressure behind it is familiar across the German premium segment right now: declining sales in China, U.S. tariffs, and billions already committed to electrification that hasn't yet generated a return.