Porsche plans to cut 1,900 jobs in Germany by 2029 as it struggles with slumping EV sales. The luxury sports car maker has already warned of lower profits this year. With plans to reduce its workforce, is Porsche sounding the alarm?

Porsche to cut jobs in Germany as EV sales lag

After announcing last week that it expects profit margins of around 10% to 12% this year, significantly lower than its long-term 20% target, Porsche said it would launch new internal combustion (ICE) and plug-in hybrid (PHEV) vehicles in response.

The company warned that developing the new models and other battery-related projects would cost an extra 800 million euros ($830,000) in 2025.

It looks like the situation could be even worse than expected. Porsche said it would cut 1,900 jobs at two German plants by 2029 (via Bloomberg), blaming “challenging geopolitical and economic conditions.” The sites include Porsche’s Zuffenhausen and Weissach plants, where it aims to reduce around 15% of the workforce.

The job cuts are expected to be voluntary, including through early retirement and layoff packages. A job security agreement is still in effect for employees in Germany until 2030.

Porshe also plans to take a “restrictive approach” to hiring, hinting growth could be slower over the next few years.

Porsche’s global deliveries dropped 3% last year, driven by a sharp decline in China, one of its most profitable markets in recent years.

As domestic EV makers like BYD, XPeng, Li Auto, Geely, and others gain momentum with advanced new models, foreign automakers continue to get squeezed out of the market.

A report from Germany’s Handelsblatt suggested other Volkswagen-owned brands could follow Porsche’s lead by introducing more ICE and PHEV models. The Volkswagen Golf, T-Roc, Tiguan, and Audi A3 are potential candidates, but we reportedly won’t see them until after 2030.

In an email to Bloomberg, the company confirmed that “Volkswagen has not changed its plans to phase out the combustion engine in Europe by the early 2030s,” adding it will “react flexibly to possible market changes.”

Electrek’s Take

While Volkswagen, Porsche, and most leading global automakers have cited slowing demand for EVs, the numbers prove otherwise.

According to Rho Motion, 1.3 million electric vehicles were sold globally in January 2025. Although that’s down from the record 1.9 million in December due to typical seasonality, the market has grown 18% from January 2024.

While Porsche continues investing in outdated gas-powered vehicles, EV leaders like BYD are doubling down on software, AI, connectivity, smart driving features, and other tech that buyers are looking for.

BYD just launched 21 of its best-selling vehicles this week with its new “Gods Eye” smart driving system for free. Although BYD is best known for its affordable EVs, like the Seagull and Dolphin, it’s expanding into Porsche territory with several new luxury models under its Denza and Yangwang brands rolling out. And BYD is only one example. Several Chinese EV makers, such as XPeng and NIO, are also expanding, with new models arriving.

Can Porsche keep up? Or will it continue falling behind as the global market shifts to electric vehicles? Let us know your thoughts in the comments below.