Porsche Plans to Cut Additional 5,000 Jobs, Bringing Total to Nearly 9,000

[Company Update] Porsche plans to cut an additional 5,000 jobs, bringing the total number of layoffs to approximately 9,000.

Key Development: Michael Lohscheller Accelerates Cost Control After Taking Office

Porsche CEO Michael Lohscheller has proposed eliminating another 5,000 positions, adding to the previously announced reduction of 3,900 roles under his predecessor Oliver Blume. This would bring the total workforce reduction to nearly 9,000 employees. With around 23,000 employees currently based in Germany, the cuts represent a reduction of almost 40%. The company may also implement salary reductions concurrently, and the proposal has already received board approval.

Strategic Rationale: Focus on High-Margin Models and Core Business

Hit by declining sales in China, rising international tariff costs, and heavy R&D investments in electrification, Porsche’s profits are projected to shrink significantly in 2025. Lohscheller is streamlining the product portfolio to concentrate on the 911 sports car and luxury SUVs, and has already shut down three subsidiaries to strengthen its core operations.