Porsche is outlining a future package to reduce its global workforce by a further 5,000 jobs by 2035, largely through natural attrition, early retirement, voluntary severance, and demographic effects, complementing cuts already announced.

The plan includes a €2.1 billion investment at the Zuffenhausen and Weissach sites to strengthen Porsche’s German operations and sustain long-term competitiveness.

Profitability has deteriorated, with 2025 group net income dropping 91% to €310 million and 2026 expected to incur high nine-figure costs, driven by China weakness, US tariffs, weaker EV demand, and costs from strategic restructuring toward internal-combustion models.

There is internal uncertainty about leadership direction as the new CEO signals a shift toward supersport cars over electrification, raising concerns among some Volkswagen Group stakeholders about potential conflicts of interest.

A brief video item presenting the story was produced for broadcast, dated earlier in the week.

Porsche’s new Cayenne Electric debuted in the U.S. with strong charging and range, but the petrol version remains, signaling a cautious pace for electrification amid cost pressures.

In China, competition is intensifying in the EV market, with several Chinese models surpassing the Tiguan as Europe’s top-selling plug-in hybrids, underscoring headwinds for VW Group and Porsche in its largest market.

The report notes the €2.1 billion investment is stated in euro terms and references the prevailing exchange rate used in coverage.

Further updates to the story are anticipated as plans develop and details emerge.

Investors will be watching whether these cost savings, plus the investment program, can stabilize margins and align production with evolving demand for EVs and luxury vehicles.

The workforce pact is seen as a test of Leiters’ leadership at VW Group and a signal for potential further savings across VW brands, including Audi.

Audi’s weaker performance in China and the U.S. weighs on the group’s first-half results, with a lower ROE and reduced China contribution, and a softer outlook for 2026.