Porsche Plans to Cut Up to 25% of Admin. Jobs to Fund EV Shift

Porsche AG, the iconic German sports car manufacturer, has unveiled ambitious plans to significantly restructure its administrative and support functions, potentially resulting in a workforce reduction of up to 25% in certain indirect divisions.

This strategic overhaul is a direct response to the massive financial requirements and operational shifts.

These demands stem from the automotive industry’s accelerating transition towards electric mobility and software-defined vehicles.

Porsche AG Funding the Electric Future

The proposed personnel cuts are a critical component of Porsche’s comprehensive efficiency program.

This program is often referenced under the umbrella of its “Roadmap to 2030.”

The primary objective is to streamline corporate overhead and reallocate billions of Euros necessary to fund the development of next-generation electric platforms, battery technology, and advanced digital ecosystems within its vehicles.

By optimizing administrative staffing, the company aims to sustain its premium profit margins while investing heavily in future technologies.

The target for the reduction—up to a quarter of staff—is primarily focused on non-production, administrative, and IT-related roles, including various levels of management.

The move signals a company-wide drive for enhanced efficiency, particularly as digitalization promises to automate many traditional office functions.

Strategy of Attrition and Voluntary Severance

In line with the strong labor protections and long-standing partnership with the Works Council in Germany, Porsche has emphasized the reductions.

Porsche will implement the reductions through socially responsible measures.

The company is actively focusing on reducing headcount through natural attrition—meaning open positions will remain unfilled—and the implementation of voluntary early retirement or severance packages.

This approach minimizes compulsory layoffs. It also ensures that the necessary cost savings are achieved gradually while maintaining employee morale and cooperation.

The company will largely protect critical areas directly involved in electric vehicle production and software engineering.

This reinforces the company’s commitment to prioritizing its core future growth areas.

The restructuring clearly indicates that even highly profitable luxury automakers are not immune to economic pressures.

These pressures stem from the ongoing technological transformation.

Porsche is effectively clearing out legacy structures to become leaner and faster.

The company aims to focus more intently on sustainable, electric-powered growth for the next decade.

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