Porsche AG has agreed a restructuring package with its works council and IG Metall that will reduce its workforce by around 5,000 jobs by 2035, while ruling out compulsory redundancies for the duration.
The company said the deal, called the “Future Package,” forms the core of its Strategy 2035 and will be presented in full at a Capital Markets Day in October.
The job reductions will be achieved through natural attrition, demographic change, an expanded partial retirement programme, and voluntary severance agreements.
In exchange for these concessions, Porsche has committed to investing €2.1 billion in its Zuffenhausen and Weissach sites through the end of 2035, with the aim of keeping two-door sports car production in Zuffenhausen and concentrating development work for all model lines in Weissach.
The deal includes a wide set of measures designed to lower personnel costs and improve productivity. Employees under Porsche’s specific pay framework will see 3.5 percent of current and future collectively agreed pay rises deferred until 2035.
Christmas bonuses will be reduced from up to 100 percent of a monthly salary to 60 percent, with the voluntary company contribution falling from 45 to five percent. Remote working will be capped at eight days per month, down from twelve.
In return, Porsche will pay employees a one-time transformation bonus of €1,500 in August 2026. IG Metall members will receive an additional €411, bringing their total to €1,911, along with an annual membership bonus of one extra day off and a €200 voucher.
“The Future Package is good for Porsche. It gives us the opportunity to strategically realign our company and invest in our competitiveness. We are laying the foundation for our ‘Sportwagenschmiede 35’ strategy with this Future Package. Now it is up to all of us to deliver. Because one thing is clear: only by achieving our goals and being economically successful, we can also give our employees the security they need,” Dr. Michael Leiters, Chairman of the Executive Board of Porsche AG said in a statement.
“Beforehand few people would have thought that it would be possible that we could reach an agreement on a Future Package extending to 2035 – especially given the current environment. We were able to convince the management that investing in Porsche as a company and in the Zuffenhausen and Weissach sites is an opportunity, and that it will also play a major role in securing employment for another five years. The fact that compromises had to be made is part of negotiations. We are now looking ahead again – for the core workforce and the Porsche brand.” For Aslan, it was important that everyone contribute their fair share. However, he also emphasizes: “The package was hard-fought. Now we have to implement it together with the Executive Board. With the transformation bonus, our colleagues will receive the recognition they deserve,” Ibrahim Aslan, Chairman of the General Works Council of Porsche AG added.
“The Future Package shows that transformation can be actively shaped in the interests of employees with strong works councils and a highly unionized workforce. The new membership bonus will make this tangible for members of IG Metall. The extension of employment and site protection until 2035 and the investments are an important signal for the entire workforce and for Baden-Württemberg as an industrial location. The employees are contributing, and this must pay off: now the company has a responsibility to implement the promised investments and to lead Porsche back on a successful course,” Tamara Hübner, Second Representative of IG Metall Stuttgart further explained.
