German carmaker Porsche to cut another 5,000 jobs by 2035

German luxury carmaker Porsche will eliminate an additional 5,000 jobs by 2035 under a new restructuring agreement reached between management and labour representatives, the two sides announced in a joint statement on July 27.

The latest round of cuts comes as the Volkswagen subsidiary grapples with rising costs, intensifying competition and tariff-related challenges after seeing its financial performance weaken in recent years, Caliber.Az reports, citing Reuters.

The planned layoffs follow an earlier restructuring package that included 3,900 job reductions, as well as another 500 positions announced earlier this year by Chief Executive Officer Michael Leiters.

According to the statement, the latest workforce reductions will be implemented in a socially responsible manner.

As part of the agreement, Porsche will also extend job location guarantees at its production sites by five years through 2035 and invest €2.1 billion ($2.39 billion) in its Zuffenhausen and Weissach facilities.

By Bakhtiyar Abbasov