Porsche's core factory in Germany plans to lay off another 4,000 employees. CEO: "We must make money with fewer cars!"

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The cold winter for Germany’s auto industry is continuing. Porsche is preparing to launch a new round of large-scale layoffs at its core factory, and combined with previously confirmed downsizing plans, nearly 8,000 positions are expected to be affected. This highlights the difficulties faced by German manufacturing under multiple pressures such as weak demand, high costs, and intensified competition.

According to German business media “Handelsblatt,” citing sources familiar with the matter, Porsche plans to cut up to 4,000 additional jobs at its Zuffenhausen factory in Stuttgart. Previously, the company had reached an agreement with employee representatives to cut 3,900 positions; in total, around 7,900 jobs will be affected.

Porsche CEO Michael Leiters previously stated that the company plans to reduce production to below last year’s sales volume of around 280,000 vehicles and emphasized that the future must “make more money with fewer cars.”

In the first quarter of this year, the company’s profitability came under further pressure as tariffs, geopolitical uncertainties, and product cycle gaps all weighed on performance. Meanwhile, Chinese electric car brands are accelerating their expansion into the European market, resulting in even fiercer competition for traditional European automakers.

Porsche Layoffs Extend to R&D System, German Auto Industry Restructuring Deepens

The latest restructuring mainly involves the Zuffenhausen factory – the production base for Porsche’s core models such as the 911, 718, and Taycan. Reports indicate that administrative and management positions will be the main focus of layoffs. Furthermore, the company is considering reducing capacity at the Weissach R&D center by up to 30%, showing that this restructuring has extended from production to the R&D system.

Porsche belongs to the Volkswagen Group. The CEO of Volkswagen Group previously warned that the overall restructuring might affect more than 100,000 jobs. Porsche’s further expansion of layoffs also reflects the continued pressure on the Volkswagen Group to cut costs and improve efficiency.

In fact, Porsche is not an isolated case. Persistently high energy costs and weak demand for cars in Europe are forcing more and more German car companies to promote restructuring through layoffs, production cuts, and capacity reductions. Porsche’s latest plan is undoubtedly another microcosm of the deep adjustments in Germany’s auto industry and highlights the increasingly severe competitive challenges facing European manufacturing.

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