Porsche plans to cut nearly 2,000 jobs by 2029 due to economic challenges, focusing on voluntary departures and retirements while ensuring job security until 2030.

German sports car manufacturer Porsche announced on Thursday that it plans to cut approximately 1,900 jobs at two of its plants in Germany by 2029. These reductions come in addition to existing job losses among temporary employees, bringing the total staff reduction to around 15%.

The company stated that the job cuts would affect its main plant in Stuttgart-Zuffenhausen and a secondary facility in Weissach. According to human resources manager Andreas Haffner and works council chairman Harald Buck, the reductions are set to be completed by 2029.

To achieve this, Porsche plans to implement a part-time retirement scheme for employees born in 1970 or earlier, limit new hiring, and allow natural employee retirements to contribute to the downsizing. The company assured employees that they would have job security until 2030, ruling out redundancies for operational reasons until then while relying on voluntary departures.

These layoffs add to previously planned staff reductions, as Porsche announced last year that it would not extend approximately 2,000 temporary contracts.

The company cited difficult economic conditions as the reason for these measures. Haffner emphasized that while Porsche remains in a relatively strong position, it faces multiple challenges, including delays in scaling up electromobility and the broader geopolitical and economic landscape.

Germany, traditionally reliant on manufacturing and exports, has seen reduced demand both domestically and internationally. The country’s unemployment rate has also risen, with nearly three million people unemployed as of January, the highest figure recorded since January 2015.