A new wave of layoffs may be coming to Porsche, as the parent company Volkswagen aims to achieve more savings within its sports luxury brand. According to the German business paper Handelsblatt, some 4,100 extra jobs at the brand may now be cut in addition to other positions already agreed upon by the parent company.
These proposed job losses are part of the company’s efforts to enhance the profitability of the Porsche brand. The internal plan of Volkswagen is targeting an overall increase in the brand’s result by the end of the decade by a sum of €3.8 billion. Of the €1.8 billion of overhead savings that should be achieved, about €1.1 billion has already been found, leaving about €700 million gap.
The proposed 4,100 extra cuts will happen despite Porsche having made significant workforce cuts earlier. In July, Porsche management and workers’ representatives agreed to slash around 5,000 more jobs after about 4,000 others were agreed to before. According to Handelsblatt, the total number from both agreements is approximately 8,900.
Volkswagen, meanwhile, is under pressure in its other areas of business. As of September 18, the company trimmed down its forecast for the operating return on sales in 2026 to at most 1%, compared to its initial target of 4%-5.5%. Volkswagen cited tough market conditions, especially in China, further restructuring costs and developments concerning Porsche.
China is becoming a major pain for the company. The company indicated that the number of vehicles delivered to China reduced by 20% in the first six months of 2026. The operating result in the group was down 11.6% on an annual basis to €5.9 billion.
The German carmaker is in the process of undergoing a change not only in its product strategy but also in its EV strategy. The luxury vehicle brand has been experiencing difficult times because of weak demand from China and problems that come with the changeover to an electric vehicle.
This means that the extra 4,100 jobs will be yet another measure of cost cutting by the company following its previously announced job cuts at the carmaker. This move by Volkswagen highlights the kind of cost-cutting measures it is considering amid difficult market conditions.
