Porsche to cut 5,000 jobs by 2035
German automaker Porsche AG plans to reduce its workforce by another 5,000 jobs by 2035 as part of its Future Package, a long-term agreement intended to strengthen the company’s competitiveness, Qazinform News Agency reports.
On Monday, Porsche announced that the job reductions were agreed upon by the Executive Board and the General Works Council, which negotiated with IG Metall and the Südwestmetall employers’ association.
Porsche said the cuts will be achieved primarily through natural attrition, demographic effects, expanded partial retirement programs, and voluntary severance agreements, with no compulsory redundancies planned through the end of 2035.
As part of the agreement, Porsche also extended employment and site protection at its Zuffenhausen and Weissach facilities through the end of 2035 and committed to invest a total of €2.1 billion in the two German sites.
The company said the measures form part of its “Sportwagenschmiede 35” strategy to strengthen long-term competitiveness by increasing flexibility and productivity while securing future investment.
Earlier, Qazinform News Agency reported that Volkswagen Group could cut up to 100,000 jobs worldwide as Europe’s largest automaker seeks to reduce costs amid weaker sales and intensifying competition, particularly from Chinese manufacturers.