Porsche Plans Biggest Layoffs in Its History as Profit Collapses

Porsche is preparing for what could become the largest workforce reduction in its history, with more than 5,500 jobs in Germany potentially at risk. The warning comes after a dramatic collapse in operating profit and mounting pressure to shift production to lower-cost countries, as reported by Handelsblatt.

Operating profit for Q2 dropped to just €245 million — down from the €2 billion per quarter the company typically generated in prior years. The decline follows higher US tariffs, restructuring charges and a worsening backdrop for German manufacturing.

“One in four jobs is under threat”

Ibrahim Aslan, Chairman of the Porsche Works Council, said the company has not presented a clear strategy for its German sites while simultaneously signalling a shift of development and production to locations with “significantly lower wage levels.”

“By doing so, management is putting one in four jobs at Porsche AG at risk,” Aslan warned.

The affected sites include the flagship Stuttgart-Zuffenhausen plant, the Weissach development centre and several smaller facilities. Together, they employ around 23,000 people, meaning more than 5,500 positions could be eliminated if plans materialize.

Germany’s broader industrial downturn intensifies

The situation at Porsche comes against a rapidly deteriorating backdrop for German industry. According to government data, the country is losing an estimated 10,000 industrial jobs per month as high energy costs, weak global demand and chronic underinvestment weigh on production.

Eurostat reports that Germany’s manufacturing sector has fallen below 20% of national economic output for the first time since data collection began. Meanwhile, business failures continue to climb: by year-end, approximately 23,900 companies are expected to file for insolvency — the highest number since 2014.

Porsche’s outlook: profitability under pressure

Porsche said it is attempting to remain profitable despite restructuring charges and global tariff pressures. The company did not provide formal guidance for future quarters but acknowledged that labour-cost disadvantages in Germany could force a reevaluation of local operations.

The Works Council pledged to oppose large-scale layoffs but said final decisions rest with management and shareholders.