Luxury car maker Porsche is set to reduce its workforce by nearly 10%, resulting in approximately 4,000 job losses. The automaker cites declining sales, U.S. tariffs, and global supply chain disruptions as key factors behind the decision. By Leatherbiz.

A portion of the cuts will come from natural turnover, including retirements. However, the scale of the layoffs is larger than previously anticipated. Earlier reports suggested Porsche planned to cut 1,900 jobs in Germany, but the latest figures indicate a more significant reduction.

Finance and IT chief Jochen Breckner acknowledged the impact of tariffs, stating they cause “sleepless nights” for the company. In addition to direct layoffs, Porsche will not renew over 2,000 fixed-term contracts over the next four years.