Porsche eyes 5,000 more job cuts after sales drop 15% in H1 2026

Porsche is reportedly considering 5,000 additional job cuts after vehicle sales declined 15% in the first half of 2026, as the German luxury carmaker steps up cost reduction efforts amid weakening demand and an evolving product portfolio.

According to German business daily Automobilwoche, citing sources familiar with the matter, CEO Michael Leiters recently presented a new strategy to the company's supervisory board that includes another round of workforce reductions. If implemented, the move would come on top of the 3,900 job cuts already announced under former CEO Oliver Blume, taking the total planned reductions to around 9,000 positions.

Sales slowdown intensifies pressure

The reported restructuring plans follow a sustained decline in Porsche's sales performance.

The company delivered a record 320,221 vehicles in 2023 before sales fell to 279,449 units in 2025. The downturn has continued into 2026, with demand declining 15% during the first six months of the year.

The weakening sales environment comes as Porsche navigates a transition in its product portfolio, with several key models either discontinued or awaiting replacements.

Product transition adds to challenges

Porsche is undergoing one of the most significant product transitions in its recent history.

The petrol-powered Macan is scheduled to go out of production this month, while its combustion-engine successor is not expected before 2028.

The company also ended production of the 718 Boxster and 718 Cayman last October. Their successors are expected to return from 2027, with both electric and combustion-engine variants planned.

The temporary absence of these models leaves noticeable gaps in Porsche's line-up during a period of slowing global demand.

Workforce strategy under review

According to the Automobilwoche report, the proposed restructuring extends beyond headcount reductions. Reported measures include:

• Around 5,000 additional job cuts, subject to approval.
• Total planned workforce reductions of about 9,000, including the previously announced 3,900 positions.
• Possible salary reductions for remaining employees.
• A proposed employment guarantee until 2035, preventing operational layoffs during the period.

Porsche's workforce has already declined from 42,615 employees in 2024 to 41,780 in 2025.

The report said a significant portion of the proposed reductions would affect research and development, where management is seeking to simplify operations and reduce complexity.

Development costs come under scrutiny

Porsche has already announced closer collaboration with Audi to accelerate vehicle development and share engineering costs.

The increased cooperation is expected to reduce the number of employees required in research and development while supporting future product programmes.

Despite the reported cost-cutting measures, Porsche continues to invest in new vehicles.

The company is developing a three-row SUV positioned above the Cayenne. It is also evaluating a new flagship hypercar to succeed the 918 Spyder, alongside the planned return of the 718 sports car range and a new combustion-engine crossover.

Wider restructuring across Volkswagen Group

The reported workforce reductions at Porsche come as its parent, Volkswagen Group, is also expanding its restructuring efforts.

According to Reuters, citing an internal company memo, Volkswagen Group is considering increasing its planned workforce reduction to around 100,000 jobs, reflecting broader cost pressures across Europe's automotive industry.

For Porsche, the immediate focus remains on restoring profitability while navigating weaker demand, product transitions and rising competition, particularly in China. Whether the reported restructuring proposals proceed will depend on discussions with the supervisory board and employee representatives in the coming months.