Porsche is cutting another 5,000 jobs. Total layoffs now approach 9,400.

TL;DR

Porsche will cut 5,000 more jobs by 2035, adding to 4,400 already announced. Operating margin collapsed to ~1%. €2.1B in factory investment and plant guarantees to 2035 are part of the deal.

Porsche will cut another 5,000 jobs by 2035 under a second restructuring package agreed between management and labour representatives. The cuts come on top of 3,900 job reductions and an additional 500 announced by CEO Michael Leiters earlier this year, bringing total planned layoffs close to 9,400. The Volkswagen subsidiary described the reductions as “socially responsible.” In exchange, workers secured plant location guarantees extended by five years to 2035 and €2.1 billion ($2.39 billion) in investments at the Zuffenhausen and Weissach factories.

Porsche went from VW Group’s profit driver to a crisis case. China sales fell 26% and operating margin collapsed to approximately 1%. The brand that once generated the margins Volkswagen used to subsidise...

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