Porsche in Crisis: One in Four Jobs At Risk

The prestigious German car manufacturer, based in Stuttgart, appears to be in difficulty. According to Ibrahim Aslan, chairman of Porsche's works council, management is considering relocating certain production activities: “The board has not yet presented a vision for the future of our German Porsche sites, but it is threatening to transfer development and production to countries where wage levels are significantly lower,” he said in a statement. This decision would potentially deprive historic German sites, particularly in Stuttgart-Zuffenhausen and Weissach, of thousands of jobs.

This warning comes at a time when the Volkswagen Group's strategy is being seriously questioned, as it is caught up in a complicated economic reality. When it published its third-quarter 2025 figures on October 24, the German manufacturer reported a loss of nearly €1 billion.

Other figures and data are also cause for concern: a decline in deliveries (310,718 vehicles delivered in 2024, down 3% from 2023), persistently weak demand in the Chinese market, a slowdown in the transition to electric vehicles, and disruptions in the supply chain.

Faced with these adverse factors, Porsche's management has launched a comprehensive cost-cutting plan, which is resulting not only in accelerated job cuts but also in savings on bonuses. For example, the 2024 special bonus offered to employees has been almost halved compared to 2023.

The works council, for its part, cites a major risk to the future of the German sites and is demanding job guarantees until 2035, arguing that the threats of relocation jeopardize not only hundreds of jobs, but also all of Porsche's industrial know-how.

The situation at Porsche raises a fundamental question that applies to all manufacturers: how can profitability requirements be reconciled with job preservation in an unstable global environment marked by energy transition and pressure on production costs? If Porsche manages to turn things around, the transition will nevertheless be painful for several thousand employees, whose future currently seems uncertain.

In 2026, the manufacturer will launch its new electric Cayenne model, as well as the new Macan GTS. The commercial success of these two cars could have a significant impact on the future of the brand and its strategy.