Via porsche.com
Porsche ramps up job cuts to 9,000 by 2035 as profits crater over 90%
The luxury automaker's supervisory board approved an additional 5,000 layoffs as declining China demand and EV transition woes hammer the bottom line.
Porsche’s supervisory board has approved plans to eliminate roughly 9,000 positions by 2035, a dramatic escalation of a restructuring effort that started with far more modest ambitions.
The latest round adds approximately 5,000 jobs to the roughly 3,900 cuts previously announced. Porsche’s German operations employ around 23,000 workers, meaning the company is looking at shedding close to 40% of that workforce over the next decade.
How Porsche got here
Porsche reported a decline of over 90% in net profits in the first half of 2026. Vehicle sales dropped 15% over the same period.
The electric vehicle transition hasn’t helped either. Porsche has been investing heavily in electrification, but the shift has proven more expensive and less immediately rewarding than projected.
CEO Michael Leiters, who took the helm in 2025, inherited a company already showing cracks. Before the latest round, Porsche had already shuttered three non-core subsidiaries, eliminating over 500 jobs as of May 2026.
Where the axe falls
The reductions are concentrated in administrative and R&D roles within Germany. Porsche has committed to handling the downsizing through voluntary severance packages, early retirement, and natural attrition. No forced layoffs, at least for now. Workers who remain will receive job security guarantees through 2035.
Why crypto and macro investors should care
When a company that sells $100K-plus vehicles sees profits drop by over 90%, it tells you something about the state of discretionary spending at the top end of the income spectrum.
The China demand story is particularly relevant. Chinese consumers have been a major driver of luxury goods and premium automotive sales for the past decade. Their retreat from European brands reflects broader capital flows, consumer confidence shifts, and a domestic EV industry that’s eating the lunch of legacy automakers.
Porsche’s restructuring will ripple through hundreds of suppliers and ancillary service providers across Europe. When a manufacturer of this scale cuts nearly 40% of its domestic workforce, the knock-on effects touch everything from specialized component makers to regional economies that depend on those paychecks being spent locally.