Porsche to Cut Up to 6,000 Jobs as EV Market Shifts

Porsche is bracing for a major workforce reduction, with reports indicating the luxury automaker plans to eliminate up to 6,000 positions by 2035. The cuts, first reported by German outlet Manager Magazin and confirmed by Reuters, come as the company faces a sharp decline in sales and shrinking profits.

CEO Michael Leiters is expected to oversee the second round of restructuring, targeting between 5,000 and 6,000 jobs, according to Bild newspaper.

The downturn is hitting Porsche hard in China, once a guaranteed profit center for European luxury brands. Domestic competitors like BYD, Zeekr, and Nio are winning over buyers with lower prices, better connectivity, and advanced digital features. In the first quarter of 2026, Porsche deliveries in China dropped 21 percent to just 7,519 vehicles.

The company has even stopped accepting new custom orders for the Taycan and electric Macan in mainland China, limiting sales to existing stock. Meanwhile, the Taycan, once celebrated as the ultimate electric sports sedan, is struggling globally. Used models are losing up to half their value within two years, and production at Porsche’s historic Zuffenhausen factory has slowed due to weak demand, software glitches, and a previous battery recall.

Leiters has acknowledged the brand bet too heavily on electric vehicles, assuming steady growth that never materialized. 1 percent, a far cry from the comfortable double-digit figures of recent years. The pain extends beyond Stuttgart: parent company Volkswagen Group warns that 100,000 jobs could be cut across the conglomerate as it fights to stay competitive against affordable, high-tech Chinese EVs.

Even the iconic 911, which saw deliveries rise 22 percent early this year, can’t offset the drag from the brand’s electric ambitions. Until Porsche finds a way to sell EVs profitably, more downsizing appears inevitable.