Porsche’s Cost-Cutting Drive To Claim Another 5,000 Jobs: Report

To say Porsche is in a pickle would be a major understatement. Falling from a record 320,221 sales in 2023 to 279,449 units last year underscores the severity of the situation. While I’m not a prophet, 2026 is likely to be even worse, as demand fell 15 percent in the first six months of the year. Things will likely get worse before they get better.

The gas-powered Macan goes out of production this month, leaving a huge hole in the company’s lineup. Its direct successor won’t be ready until 2028 at the earliest. Elsewhere, Porsche stopped making the 718 models last October and won’t bring the Boxster and Cayman back until 2027 at the earliest. The two-door sports cars will return with electric drivetrains, alongside revived combustion-engine versions, the latter of which can’t come soon enough.

In the meantime, Porsche is looking to tighten its belt to improve its balance sheet before a wave of new models potentially turns things around. On top of the already announced 3,900 layoffs while Oliver Blume was still in charge, further job cuts are likely in the coming years. German business newspaper Automobilwoche, citing sources close to Zuffenhausen, reports that CEO Michael Leiters presented his future strategy to the supervisory board earlier this week, proposing roughly 5,000 additional layoffs.

That would bring the total to around 9,000 job cuts. For reference, Porsche’s workforce has already shrunk from 42,615 employees in 2024 to 41,780 last year. Beyond further layoffs, salary reductions are also possible. In exchange, the remaining staff would receive a job security guarantee until 2035, meaning operational layoffs would be off the table until the middle of the next decade.

The deeper cuts are expected to focus on R&D, as Michael Leiters aims to reduce complexity. Porsche has already announced closer cooperation with Audi to accelerate development of new models and spread costs, reducing the need for as many employees in research and development. Even so, 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 remains in development to slot above the Cayenne, while a new hypercar to succeed the 918 Spyder is still under consideration.

The additional job cuts at Porsche would come as parent company Volkswagen Group is reportedly looking to double its planned layoffs to around 100,000 jobs, according to an internal memo seen by Reuters.

Motor1’s Take: It’s clear that Porsche, and the broader VW Group, has little choice but to downsize by cutting costs while prioritizing volume models and those with higher profit margins. With several key products missing from its lineup, Porsche’s short-term outlook appears challenging. At the same time, sales continue to slide in China, with little sign of a rebound as domestic automakers keep gaining ground.