German luxury carmaker Porsche has confirmed it will cut up to 4,000 additional jobs as part of a broader cost-saving and restructuring programme, the latest sign of mounting challenges facing the country’s premium automotive sector.
The move comes on top of earlier announced reductions and is driven by slowing demand for high-end electric vehicles, intense global competition (particularly from Chinese manufacturers), American tariffs, and rising production costs.
Porsche, part of the struggling Volkswagen Group, employs around 40,000 people worldwide, with the majority based in Germany.
A company spokesperson described the cuts as “necessary” to secure long-term competitiveness, emphasising investments in new technologies and efficiency measures.
The reductions are expected to affect administrative, development, and production roles, though the company has pledged to minimise compulsory redundancies through natural attrition, early retirement schemes, and internal reassignments where possible.
According to information from company circles, three prominent female managers will lose their previous functions.
Head of Europe Iryna Kauk, the head of the “Overseas and Growth Markets” region, Christiane Zorn, and Maryam Djavadi, head of the department for luxury and exclusivity programs, have to go, Handelsblatt reported.
Their ousting comes amid a restructure of the sales division.
Porsche CEO Michael Leiters said he wanted to “sweep the stairs from above”. After reducing the board of directors, he now went for the management level.
The car company said it wants to be “leaner and more efficient”.
Around 30 percent of the capacities of the Weissach development site are reportedly under scrutiny.
Porsche did not officially confirm the rumoured figure of 4,000 possible further job cuts and a spokesperson said the company would present its plans at the end of July.
German carmaker Volkswagen has to recall almost 100,000 electric vehicles worldwide due to faulty batteries. https://t.co/U3BsNLS65x
— Brussels Signal (@brusselssignal) March 27, 2026
In the first quarter of 2026 Porsche saw it sales decrease 15 per cent compared with the same period in 2025.
It already announced job cuts and plant closures.
The announcement follows similar moves by other German automakers, including Volkswagen and Mercedes-Benz, reflecting wider industry headwinds.
High energy prices, high labour costs, high taxes, together with supply chain disruptions, and a slower-than-expected transition to electric vehicles have forced manufacturers to reassess their workforce levels despite strong historical profits.
Trade unions have expressed concern over the scale of the cuts, warning they could damage morale and Germany’s engineering expertise.
In 2026 so far, the German automotive industry has seen announcements of roughly 15,000–18,000 additional job cuts.
Over the past roughly 12–18 months (2025 through mid-2026), the German automotive industry has seen approximately 35,000–45,000 jobs lost or announced for elimination.
The figure does not include indirect jobs in the supply chain or related sectors that have also been affected.
Carmaker Porsche plans to cut an additional 1,900 jobs across the entire company over the next four years after a programme that has already started was determined to be insufficient. https://t.co/FzUgsSCLa0
— Brussels Signal (@brusselssignal) February 13, 2025
