- Porsche plans to cut 9,000 jobs by 2035 through voluntary measures.
- The company is scaling back parts of its all-electric strategy as EV demand slows.
- Weak sales in China and rising competition are adding pressure on the luxury carmaker.
Porsche is cutting another 9,000 jobs over the next decade as it rethinks its electric vehicle strategy amid slowing EV demand and weaker sales in China.
The latest round of reductions brings the total number of planned job cuts to 9,000, including 4,000 positions announced earlier, representing around 21 per cent of the company's workforce of 42,066 employees in fiscal year 2025. Porsche said the reductions will be achieved through natural attrition, early retirement schemes and voluntary buy-outs rather than compulsory redundancies.
The move comes as the German luxury carmaker reassesses its long-term electric vehicle (EV) plans after demand failed to meet earlier expectations in several key markets.
Reality catches up with the EV roadmap
When Porsche launched the Taycan in 2019, it was widely seen as one of the most advanced electric cars produced by a traditional car manufacturer. Its 800-volt architecture enabled faster charging, while continuous upgrades have improved both driving range and charging performance. Newer versions can travel well beyond 482 kilometres on a single charge.
The Taycan also marked the beginning of Porsche's ambitious shift towards electrification. The company announced that the Macan would become an electric-only model and outlined plans to replace the Boxster and Cayman sports cars with fully electric successors.
That strategy has since evolved.
Although the Macan Electric reached global markets with advanced technology, higher prices and continued customer demand for petrol-powered vehicles have affected sales. Porsche has since started developing a new petrol-powered Macan and has delayed the launch of its electric Boxster and Cayman models. Company executives have also indicated that internal combustion engine variants are likely to remain part of more of the model range than originally planned.
China slowdown adds to the pressure
Changing course has come at a cost. Developing new vehicle platforms requires years of investment, making strategic shifts both expensive and time-consuming.
At the same time, Porsche is facing growing pressure in China, once its largest market. Local manufacturers have intensified competition, particularly in the premium EV segment, while demand has weakened.
The company sold around 42,000 vehicles in China last year, compared with 95,671 units in 2021, highlighting the scale of the slowdown.
The combination of weaker demand, tougher competition and rising development costs has prompted Porsche to focus more heavily on cost control while taking a more cautious approach to future EV programmes.
The latest workforce reductions suggest the company is no longer planning its transition to electric vehicles at the pace it once expected, as it adapts to changing market conditions rather than pushing ahead with its original timetable.
