Porsche Is Cutting a Bunch of Jobs Over Weak EV Demand

Slumping sales in China aren't helping, either.

Photo by: Porsche

By: Christopher Smith

Feb 13, 2025 at 4:57pm ET

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It's no secret that Volkswagen Group is having a tough time right now. With 2024 fading in the rearview and all kinds of uncertainly facing automakers for the future, Porsche, one of VW's most important brands, is looking to downsize. Considerably.

The automaker is planning to cut 1,900 jobs over the next few years at various locations throughout Germany, according to Reuters. Citing a company spokesperson, the report states Porsche's previous reduction plan simply wasn't sufficient enough. Last year, the sports car maker didn't renew contracts for 1,500 fixed-term workers, and 500 more are about to end.

The new plan will "cut around another 1,900 jobs across the entire company in the coming years," the spokesperson said.

Photo by: Porsche

Attention will fall on Porsche's primary facilities in and around Stuttgart. Ideally, the company hopes to accomplish the cuts without forced layoffs. Per Automotive News Europe, buyout packages and early retirements will play a major factor. Porsche will also be frugal when it comes to filling new roles. Workers at the large factory in Stuttgart-Zuffenhausen and its research facility in Weissach will bear the brunt of the cuts.

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The news comes not long after VW's struggle to not close factories in Germany, something that hasn't been done in the company's history. Ultimately, a deal was struck to keep the lights on at all current plants in return for no wage increases for workers until 2031. However, job cuts at VW could top 35,000 before all is said and done.

A slump in EV sales throughout Europe and fierce competition from China has several automakers reviewing their bottom lines. Porsche's global sales fell 3 percent last year, but sales in China tumbled 28 percent. And of course, there's considerable uncertainty in the automotive market right now with regard to tariffs and trade wars stemming from the Trump administration. In short, nobody knows what the hell is going on right now, or what's going to happen in the future.