Overview
- Porsche and its works council reached the 'Future Package' on Monday that adds about 5,000 reductions to earlier cuts, bringing total planned job losses to roughly 9,000 by 2035.
- The company will rely largely on natural attrition, expanded partial retirement and voluntary severance to avoid compulsory layoffs.
- In return for labour concessions Porsche secured employment and site protection through the end of 2035 and committed €2.1 billion of investment at Stuttgart‑Zuffenhausen and the Weissach R&D centre.
- The package includes deferred wage increases and senior executives forgoing base pay rises in 2027–28 and is expected to reduce Porsche’s second‑half results by about €300–400 million with a similar hit next year.
- The move responds to collapsing China demand, heavy US tariff charges and a costly pullback in parts of its EV strategy and forms one element of a wider Volkswagen Group cost overhaul that could reshape plants, suppliers and regional jobs.