Porsche is planning to reduce its workforce by an additional 5,000 positions in the Stuttgart region. The company announced Monday that this move is part of a “Future Package” agreed upon by the executive board and the Works Council. The negotiations involved the IG Metall union and the Southwest Metall employer association.
Specifically, the package outlines a “socially acceptable” reduction in 5,000 jobs by 2035. This reduction is intended to occur primarily through natural staff turnover, demographic shifts, and the expansion of special programs, such as phased retirement and voluntary separation agreements.
Furthermore, the package mandates a temporary retention of 3.5 percent for both current and future collective wage increases for management and employees covered by Porsche’s specific salary framework, up until 2035. Separately, upper and top management will forego an equivalent contribution to their base salary increases in 2027 and 2028.
One-time payments are also being adjusted: the discretionary company portion of the Christmas bonus will drop from 45 percent to 5 percent by 2035. This adjustment lowers the maximum Christmas bonus from up to 100 percent of a monthly salary to 60 percent. Moving forward, this voluntary special payment will be oriented “even more strongly toward company success and earning power.” Additionally, remote work will be capped at a maximum of eight rather than the previous twelve days per month. Other changes involve revising the conditions for rest breaks and production cycle times.
To mitigate the effects of these changes, mechanisms are in place for IG Metall members. These include an “IG Metall Bonus,” which grants members one additional paid day off per year and a yearly voucher worth 200 Euros. Moreover, Porsche will pay its unionized employees a one-time transformation bonus of 1,500 Euros in August 2026. IG Metall members will receive an increased one-time bonus of 411 Euros, bringing their total to 1,911 Euros.
Through this package, the company plans to finance the safeguarding of its locations until 2035, backed by accumulated investments totaling 2.1 billion Euros in the Zuffenhausen and Weissach sites. According to the company, these investments will ensure that, for example, two-door sports cars continue rolling off the line in Zuffenhausen long-term, the special order programs will be expanded, and the development of all model ranges will remain centralized in Weissach.
