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Germany’s Biggest Carmakers Prepare Deep Cuts and Workplace Changes

Companies are trimming costs to protect margins as weak China sales, US tariffs and costly electrification and software investments squeeze profits.

Overview

  • Early July reports show Porsche is preparing a further round of cuts that could affect up to about 4,000 roles and has already reorganized parts of its sales leadership, though the company has said final details will come in a ‘Zukunftspaket’ at the end of July.
  • Internal proposals at Mercedes‑Benz include delaying a special July payment for roughly 90,000 workers, removing home‑office options and raising the standard workweek from 35 to 40 hours without extra pay, measures that have prompted large employee demonstrations.
  • Media coverage has circulated a wider Volkswagen plan that could reach on the order of 100,000 job reductions worldwide and put several German plants at risk, with key supervisory‑board and management meetings scheduled in July to review options.
  • Unions led by IG Metall have mobilized large protests and threatened strikes as staff face cuts, potential loss of local capacity — Porsche’s Weissach site reportedly has about 30 percent of capacities under review — and erosion of long‑standing terms such as the 35‑hour week.
  • All three firms say formal packages or results will be announced in July, leaving political and regional actors with leverage over outcomes and signaling a tense phase of negotiations that will determine jobs, plant futures and the industry’s ability to fund the EV and software transition.