Porsche has decided to cut a further 5,000 jobs by 2035, bringing the total planned reductions at the sports car maker to 9,000 positions.
The move comes after discussions involving Porsche’s executive board, the general works council, IG Metall union and the Südwestmetall employers’ association.
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The arrangement supports the company’s “Future Package”, which forms part of the wider “Sportwagenschmiede 35” strategy.
According to the agreement, the reductions will be carried out without forced dismissals.
The company will instead use natural staff turnover, demographic changes, an expanded special partial retirement scheme and voluntary severance arrangements.
In exchange, Porsche has extended job and site guarantees at its Zuffenhausen and Weissach sites until the end of 2035.
It has also committed to invest a combined €2.1bn ($2.38bn) in the two locations over the same period.
The latest reduction programme follows two earlier rounds: 3,900 roles agreed in 2025 and a further 500 announced in May by chief executive Michael Leiters in connection with the winding down of subsidiary operations.
To help support the investment commitment, the parties also agreed a series of cost-saving and flexibility measures.
Under those measures, a 3.5% share of current and future collectively bargained pay rises for employees covered by Porsche’s specific wage agreement will be deferred until 2035.
Senior and top management will also give up an equivalent share of basic pay increases in 2027 and 2028.
The voluntary employer-funded share of Christmas bonuses will be reduced from 45% to 5% by 2035.
This will cut the maximum payment from 100% to 60% of a month’s salary, while future discretionary payments will be linked more closely to the company’s performance and profitability.
The number of permitted mobile working days will be reduced from twelve a month to eight. Changes will also be introduced to break schedules and production cycle lengths.
Porsche said it will make a one-off transformation payment of €1,500 to every employee in August 2026.
IG Metall members will receive an additional €411, taking their combined amount to €1,911.
IG Metall members will also receive one extra day of annual leave and an annual voucher worth €200.
Porsche executive board chairman Michael Leiters said: “The Future Package is good for Porsche. It gives us the opportunity to strategically realign our company and invest in our competitiveness,”
“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.”
The announcement followed a warning to staff from Volkswagen chief executive Oliver Blume that a further 50,000 jobs could be cut at the parent company.
