Porsche to cut 9,000 jobs and shift to high-margin luxury strategy

Porsche has announced plans to eliminate approximately 9,000 jobs by 2035, representing about one-fifth of its workforce. The reductions, which will be managed through natural attrition and voluntary departure schemes rather than compulsory redundancies, come as the company faces collapsing sales in China, a stalled electric vehicle strategy, and declining profits.

To stabilize its financial position, Porsche is implementing a “value over volume” strategy. This shift focuses on high-end, highly personalized models and extreme exclusivity to rebuild profitability. The company aims to lower its break-even threshold to fewer than 200,000 vehicles per year, prioritizing higher margins on expensive cars over mass-market volume.

Despite the job cuts, Porsche has guaranteed its main German sites, including the Stuttgart-Zuffenhausen factory and the Weissach development centre, until the end of 2035. The company plans to invest €2.1 billion in these locations. The strategic pivot follows a significant drop in operating margins and increased pressure from US import tariffs and intense competition in the Chinese market.