Volkswagen Group is reportedly preparing another round of job cuts at Porsche as it looks to close a cost gap of around €700 million.
According to Germany’s Handelsblatt, documents obtained by the publication show that Volkswagen Group’s supervisory board has approved a restructuring agreement that proposes cutting approximately 4,100 additional positions at Porsche.
The planned reduction would come on top of job cuts already agreed between Porsche management and its employees. In July 2026, both sides agreed to reduce the company’s workforce by another 5,000 positions, following an earlier agreement covering 4,000 jobs.
This brings the total number of positions covered by existing agreements to around 9,000. If the latest proposed cuts are also implemented, the total would rise to approximately 13,100 positions.
The reductions are expected to take place over several years. By 2035, the combined cuts could represent around one-fifth of Porsche’s total workforce.
Volkswagen Group, however, does not have the authority to directly impose the additional layoffs. As Porsche’s parent company, it can propose measures and restructuring plans, but decisions regarding the workforce remain subject to Porsche’s own management and labour representatives.
The latest cost-cutting plans come as Porsche continues to face financial pressure. On 18 September, Volkswagen Group lowered its full-year profit margin forecast from its previous range of 4.0% to 5.5% to a maximum of 1%.
The revised outlook is partly linked to asset impairments at Porsche, adding further pressure on the luxury sports car brand to reduce costs.
The additional workforce reduction highlights the wider challenges facing Porsche as Volkswagen Group looks to improve profitability and address rising costs. The company has already been working on restructuring measures, including reducing its workforce and adjusting its operations.
For Porsche, the proposed cuts would mark another significant reduction in its workforce as the brand attempts to close the reported €700 million cost gap and improve its financial position in the coming years.
