Porsche is deep in the red. And it doesn’t look like it’s getting out anytime soon.
The German luxury automaker is reportedly preparing to slash another 5,000 positions. This isn’t news to anyone watching the stock ticker. It adds to the 3,900 jobs already axed under former CEO Oliver Blume’s watch. Now, with Michael Leiters at the helm, the axe falls again.
But here’s the trade. A grim one, perhaps, but clear nonetheless. In exchange for these cuts, the remaining workforce gets ironclad job security until 2035. No more operational layoffs for the next decade and a half. They’re betting everything on that guarantee holding up until their new product wave hits the market.
Sales Plunge: Why Porsche Is Struggling
Let’s look at the numbers. Because they don’t lie.
In 2023, Porsche sold 320,221 vehicles. That was a record high. Last year? 279,449. A significant drop. But the real worry is the trajectory. The first half of this year saw demand plummet by 15 percent. If that trend holds, 2026 will likely be even worse than 2025.
“Things will likely get worse before they get better.”
The company is currently navigating a severe product gap. The combustion-engine Macan—the brand’s best-selling model—stops production this month. The electric Macan successor won’t arrive until 2028 at the very earliest. That’s a three-year void in their volume driver.
Meanwhile, the beloved 718 Boxster and Cayman were killed off last October. Their return, whether with batteries or pistons, is delayed until 2027. Drivers are left waiting. Sales are left declining.
The 5,000 Job Cuts: Where Will They Hit?
According to the German business daily Automobilwoche, CEO Michael Leiters presented this strategy to the supervisory board earlier this month. The proposal: another 5,000 layoffs.
This brings the total workforce reduction to roughly 9,000 jobs.
To put that in perspective, Porsche had 42,615 employees at the start of 2024. By last year, that number dropped to 41,780. The bleeding continues. Some reports even suggest salary reductions might accompany these cuts. But the primary focus is structural simplification.
Which departments are facing the biggest cuts?
R&D. It has to be. Leiters aims to strip away complexity. Porsche is tightening its ties with Audi. The goal? Accelerate development and share costs. Fewer researchers, fewer developers, but faster time-to-market for the electric future.
The VW Group parent company is going through its own agony. Reuters reports internal memos suggesting Volkswagen plans to double its own layoffs to 100,000. Porsche is just one piece of a massive restructuring puzzle.
Will the New Models Save Porsche?
The strategy relies heavily on future products. Porsche isn’t just deleting cars; it’s reshaping its lineup.
- The Two-Door Return: The 718 series comes back in 2027. Electric first. Combustion engines? Maybe. The report suggests they can’t come too soon, implying a hard pivot to electrification, though purists are holding their breath.
- The Three-Row SUV: Development is underway for a large SUV to sit above the Cayenne. This targets the high-volume luxury family segment Porsche currently misses.
- The Hypercar Dream: There are still rumors of a successor to the legendary 918 Spyder. Not a volume seller, but a halo car. Essential for brand image, even if it doesn’t pay the bills.
And what about the gas-powered crossover mentioned in the strategy? Yes, they plan to keep some ICE (internal combustion engine) options for certain segments, likely where range anxiety or charging infrastructure still limits EV adoption. It’s a pragmatic, if contradictory, move.
The China Problem
You can’t talk about Porsche’s future without talking about China.
Sales continue to slide there. Domestic Chinese automakers—brands like BYD and Nio—are eating up market share. They offer better tech, lower prices, and faster innovation cycles. Porsche, with its legacy engineering and high price point, is struggling to compete on value.
The luxury segment in China is saturated. Buyers aren’t just looking for a badge anymore. They’re looking for ecosystems, connectivity, and design that reflects their status without the old-world heritage baggage.
A Gamble on 2035
So, why accept 5,000 more jobs gone?
Because the balance sheet needs fixing. Now. Porsche is using short-term pain to fund the transition. The job security until 2035 is a carrot. It tells the remaining employees: “Tough times now. Stability later. If our new cars work, we survive.”
It’s a bet. A risky one.
The 718 is gone. The Macan has an electric shadow hanging over it. The brand is caught between its heritage and its mandatory future. Leiters is stripping the company down to make it lighter, faster, and cheaper to build.
Will it work? Maybe. If the new EVs actually appeal to buyers who don’t want to be early adopters. If China doesn’t collapse entirely for Western luxury brands. If Audi cooperation doesn’t lead to soulless genericness.
The cuts are real. The job guarantees are real. But the market? The market is unforgiving. Porsche is waiting for 2027, 2028, 2030. The rest of us are just waiting to see if the brakes hold.
