Porsche to cut further 5,000 jobs under 2035 restructuring plan

(Sharecast News) - Luxury carmaker Porsche AG is planning to cut a further 5,000 jobs by 2035 as part of a wide-ranging package designed to lower personnel costs, raise productivity and support the strategic realignment of the sports-car manufacturer.

Porsche said the measures would help finance a cumulative �2.1bn investment in its Zuffenhausen and Weissach sites while strengthening competitiveness and securing as many jobs as possible over the longer term.

The workforce reductions will be carried out in a "socially responsible" manner, primarily through natural attrition, demographic effects, an expanded partial-retirement programme and voluntary severance agreements, the company announced in a statement on Monday.

The agreement, reached between the executive board, the general works council, IG Metall and the S�dwestmetall employers' association, also extends employment and site protection until the end of 2035, ruling out compulsory redundancies during that period.

Other measures include deferring parts of agreed pay increases, reducing bonus payments, changing working arrangements and requiring senior and top management to waive certain remuneration increases.

Chief executive Michael Leiters said: "The Future Package is good for Porsche. It gives us the opportunity to strategically realign our company and invest in our competitiveness.

"One thing is clear: only by achieving our goals and being economically successful, we can also give our employees the security they need."

Shares in Porsche Automobil Holding SE were up 1.3% at �27.46 by the close of trade in Frankfurt.