Azernews.Az

by Alimat Aliyeva

German luxury car manufacturer Porsche is reportedly considering cutting up to an additional 4,000 jobs as part of an expanded cost-reduction strategy, AzerNEWS reports.

Earlier, in March, the company had already announced plans to eliminate more than 3,900 positions by 2029. Now, according to new reports, Porsche is exploring further layoffs affecting another 4,000 employees.

The proposed reductions are expected to primarily impact management and administrative departments. In addition, the company is reportedly examining a potential 30% workforce reduction at its engineering and research center in Weissach, located in the state of Baden-Württemberg.

A company spokesperson confirmed to the German Press Agency (DPA) that optimization measures are being prepared, but did not disclose specific details. The full restructuring package is expected to be presented by the end of July.

Porsche, like much of the German automotive sector, has been facing increasing pressure in recent years. What initially began as a disruption caused by the COVID-19 pandemic has evolved into a deeper structural crisis, intensified since 2022 by rising energy costs and growing competition from Chinese electric vehicle manufacturers.

Interestingly, analysts note that premium German automakers such as Porsche are undergoing one of the most difficult transformations in their history. The shift from high-margin combustion engine vehicles—long the backbone of brands like Porsche, BMW, and Mercedes-Benz—to software-driven electric mobility is forcing companies to rethink not only production but also their entire business model. Some experts suggest that the coming years could determine whether traditional German luxury carmakers remain global leaders or gradually lose ground to more agile EV-focused competitors.