Michael Leiters, CEO of German sports and luxury car manufacturer Porsche, plans to cut 5,000 to 6,000 jobs at the company by 2035, according to the Bild newspaper.
At the same time, productivity is to increase by almost 15%. In addition, the number of apprenticeship positions is planned to be halved. The remaining employees will also be affected by a cost-cutting program. Special payments will only be made if sales profitability exceeds 4%.
The annual incentive bonus will be capped at EUR 1,500. The thirteenth-month salary will also be reduced. Leiters wants to implement a comprehensive reduction in staff at all levels, reduce the number of models at the brand and return the company to long-term profitability. The company forecasts an operating return on sales for 2026 of just 5.5% to 7.5%. This is a far cry from Porsche’s previous ambitions. However, the employment guarantee, extended until the end of 2035, fundamentally changes the internal structure of the group.
Porsche, like other German carmakers in recent years, has been facing challenges. Initially caused by the coronavirus pandemic, the problems have worsened since 2022 due to the sharp rise in energy prices and increased competition from Chinese electric car manufacturers. On July 6, the Handelsblatt newspaper reported that the company could cut up to 8,000 jobs in the coming years.