Porsche to protect jobs until 2035: Future package including €2.1 billion investment and 5,000 job cuts

Agreement reached on a future package for 2035.

On July 27, 2026, Porsche AG announced that its Board of Directors and the General Works Council had reached an agreement with IG Metall and the Südwestmetall employers' association on the "Future Package."

The Future Package centers on the protection of jobs and facilities until 2035, and a total investment of €2.1 billion (approximately ¥391 billion) in both the Zuffenhausen and Weissach facilities. This Future Package is the foundation for a strategic restructuring that will be carried out as part of Porsche's "Strategy 2035 (Sportwagenschmiede 35)," the details of which are scheduled to be announced at Capital Markets Day in October 2026.

The common objectives of the Future Package are to strengthen the company's competitiveness as a sports car manufacturer while also securing as many jobs as possible in the long term.

To enable these investments, the negotiating parties have agreed on a comprehensive package of measures, which will lay the foundation for greater flexibility and productivity improvements.

Porsche AG CEO Michael Leiters commented on the new Future Package:

"The Future Package is good for Porsche. It will give Porsche the opportunity to strategically restructure the company and invest in its competitiveness."

"The Future Package is laying the foundation for the 'Sportwagenschmiede 35.' From now on, we all need to deliver results. One thing is certain: only by achieving our goals and achieving financial success can we provide the security our employees need."

It is said that.

Furthermore, Ibrahim Aslan, Chairman of the Porsche AG Central Labor Council, stated that the Future Package sends a strong message:

"Especially given the current circumstances, very few people would have thought beforehand that it would be possible to reach an agreement on a future package covering up to 2035."

"We were able to convince management that investing in Porsche as a company, and in our Zuffenhausen and Weissach facilities, is an opportunity and will play a significant role in securing jobs for the next five years. Compromise was part of the negotiations. Now we are looking to the future again for our core employees and the Porsche brand."

"This package was won after tough negotiations. Now we must implement it together with the board of management. The transformation bonus will ensure that employees receive the recognition they deserve."

And comment.

No mandatory layoffs will be implemented until the end of 2035.

By extending the protection of jobs and facilities until the end of 2035, Porsche has stated that it will not implement mandatory layoffs during this period.

At the same time, they pledged to invest 2.1 billion euros during this period to secure the future potential of Zuffenhausen and Weissach.

For example, this investment can lead to:

- Continue long-term production of two-door sports cars in Zuffenhausen.
- Expand the scale of the Sonderwunsch program.
• Continue to concentrate development activities for all model lines in Weissach.

That is their goal.

To realize these investments, a comprehensive package of measures has been implemented, with the aim of significantly reducing labor costs and making working styles at each location more flexible and productive.

What is a Future Package?

• For management and employees subject to Porsche's unique compensation structure, a combined 3.5% of currently agreed-upon and future wage increases will be postponed until 2035.
• In 2027 and 2028, senior managers and executives will waive contributions equal to the increase in their base compensation.
• Furthermore, adjustments will also be made to one-time bonuses: the company's voluntary contribution to Christmas bonuses will be reduced from 45% to 5% by 2035, and the amount of Christmas bonuses paid will decrease from a maximum of 100% of monthly salary to 60%.
• In the future, voluntary special allowances will be more closely linked to the company's performance and profitability.
• Going forward, the number of days that can be worked remotely will be limited to a maximum of 8 days per month, instead of 12 days.
• Other measures include changes to the handling of breaks and the framework conditions regarding production cycle times.
• This plan also includes measures to socially responsible job cuts of a further 5,000 jobs by 2035.
• This will be achieved primarily through natural attrition, demographic changes, expansion of special partial retirement programs, and voluntary retirement programs.
   

Employees will receive a Transformation Bonus of 1,500 euros.

Employees who are members of IG Metall will now be offered an "IG Metall Membership Bonus," which includes one extra day of vacation per year and a voucher worth 200 euros per year.

*IG Metall is a major German labor union, "Industriegewerkschaft Metall (German Metalworkers' Union)".

Furthermore, Porsche will pay its employees a one-time "Transformation Bonus" of 1,500 euros in August 2026.

IG Metall members will receive an additional €411 on top of this, bringing the total transformation bonus to €1,911.

The fact that they still manage to bring up the 911 in the numbers during a discussion like this is typical of Porsche...

Tamara Hübner, the second representative of IG Metall's Stuttgart branch, said:

"The Future Package demonstrates that with a strong labor-management council and a high unionization rate, change can be proactively shaped in a way that aligns with the interests of employees. The new membership bonus will allow IG Metall union members to experience this firsthand."

"Extending job and business protection until 2035, and investing in these initiatives, sends an important message to all employees and to the state of Baden-Württemberg as an industrial hub."

"Since employees are contributing, that contribution must translate into results. Now it's the company's responsibility to execute the investments it promised and guide Porsche back onto a path to success."

It is said that.

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This new Future Package looks set to be another major transformation for Porsche.

I'm curious to see what happens next, and most importantly, I'd like to know the details of "Strategy 2035," which will be announced in October 2026. I'll be waiting for that announcement.

Source:(Official) Executive Board and General Works Council of Porsche AG agree on Future Package

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