German automaker Porsche reportedly reached an understanding with labour representatives to downsize by 5,000 jobs amid faltering demand and rising competition. The additional job cuts come after the company recently decided to lay off 3,900 people as the luxury carmaker grapples with a collapsing operating margin. In all, the company would cut around one in five jobs by 2035.
Porsche is also preparing for relatively lower production volumes compared with 2025, as it works on safeguarding profitability. In Q3 2025, Porsche reported a $1 billion loss, which analysts described as one of the toughest crises in the continent's auto sector.
