One in five Porsche workers to lose their jobs as car marker cuts another 5,000 roles

PORSCHE is set to cut 5,000 jobs by 2035 in a bid to boost competitiveness. The German car maker has seen profits fall due to plunging sales in China, which has experienced an electric car boom, US tariffs and a pause on its move to electric cars. The company said it will reduce “a further 5,000 jobs by 2035, largely through natural attrition, demographic effects, the expansion of the special partial retirement programme and voluntary severance agreements.” The news comes after a round of job cuts last year, which means the firm will reduce its workforce of more than 30,000 people by 8,900. Sign up for the Money newsletter Thank you! The agreement is part of plans to avoid redundancies and instead rely on retirements and resignations to reduce the workforce. The carmaker also plans to invest 2.1 billion euros (£1.8billion) by 2035 in two German plants, at Zuffenhausen and Weissach near Stuttgart. Workers at these sites will be guaranteed employment and site protection until 2035. In a statement the company said: “The shared objective is to strengthen the competitiveness of the sports car manufacturer and secure as many jobs as possible in the long term.” The company has also announced other cost-cutting measures, such as deferring wage increases until 2035 and not increasing senior executives’ base salary in 2027 and 2028. Porsche is one of the carmakers that has ploughed huge sums of money into the electric car transition, only to find demand weaker than expected. Most read in Money Last year the company announced that it was slowing down its shift to EVs, a decision which dented its profits by billions of euros. The company now plans to delay the introduction of some fully electric cars and extend the life of some of its combustion engine and hybrid models. Comment now