7:29 am, July 27, 2026
Porsche has approved another phase of its restructuring programme as the Volkswagen Group-owned sports car manufacturer looks to reverse falling profits and tackle mounting global challenges.
A company spokesperson confirmed to Reuters that Porsche’s supervisory board had backed a new package of measures, although they declined to comment on reports that the latest plans could take the total number of job cuts to around 9,000.
“Now it’s time to finalise the last steps,” the spokesperson said in an emailed statement.
According to German publication Manager Magazin, Porsche’s management is planning a further 5,000 redundancies, while Bild reported that chief executive Michael Leiters is targeting between 5,000 and 6,000 job losses by 2035.
If confirmed, the cuts would come on top of the 3,900 redundancies already agreed under former Porsche CEO Oliver Blume, who now serves solely as Volkswagen Group chief executive after stepping back from the dual role earlier this year.
Porsche has come under increasing pressure as sales in China have weakened, US tariffs have added to costs and the company’s electric vehicle strategy has proved more expensive than expected.
The brand, once one of Volkswagen Group’s strongest profit generators, has seen its operating margin tumble from double-digit levels to just 1.1 per cent last year
Leiters is aiming to restore profitability through tighter cost controls and a reduced model range, with greater emphasis on high-margin vehicles including the iconic 911 and the firm’s luxury SUV line-up.
One of his first major decisions was to close three Porsche subsidiaries, resulting in a further 500 job losses in addition to the previously announced 3,900 redundancies.
Porsche is expected to present the latest restructuring plans to employees on July 27. As with previous Volkswagen Group cost-cutting programmes, any workforce reductions are likely to be accompanied by commitments on future employment and production in negotiations with labour representatives.