Porsche May Cut One-Third of Workforce By 2035

The Volkswagen Group has issued a profit warning, projecting a maximum profit margin of just 1 percent for 2026—a substantial decrease from its previous guidance of 4 to 5.5 percent. Consequently, Porsche is expected to implement further rigorous restructuring measures to stabilize its business operations.

Porsche faces a total of 13,100 potential job cuts by 2035—nearly one-third of its workforce—if the Volkswagen Group’s latest recommendation for 4,100 additional layoffs is approved. This follows previous plans for 9,000 cuts, as the automaker struggles with declining sales, U.S. tariffs, and costly EV strategy shifts.

Porsche faces significant restructuring, with potential job cuts totaling 13,100 by 2035, as it battles falling sales in China, U.S. tariffs, and costly EV strategy shifts. Following a sharp decline in profit margins from 9% to 1.1%, CEO Michael Leiters is pivoting toward a “Strategy 2035” plan that prioritizes profitability over volume, focusing on core sports cars and a diversified powertrain portfolio. Further cost-cutting measures appear inevitable as the company seeks to stabilize operations.

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