German sports car manufacturer Porsche has announced a new round of staff cuts. In the coming years, the company plans to eliminate around 5,000 more jobs, Bild reports. A decision had already been made earlier to cut 3,900 employees, and another 500 positions will disappear in its subsidiaries.

At the same time, Porsche will extend its employment guarantee for workers at its main plant in Zuffenhausen and its research center in Weissach until the end of 2035. There will be no mass layoffs: the company intends to reduce headcount by leaving vacant positions unfilled, through early retirement, and by voluntary agreements.

To preserve jobs, employees will have to make concessions. Until 2035, part of wage increases will be frozen, Christmas bonuses will be reduced, and performance bonuses will be tied even more closely to the company’s results. In addition, the option to work from home will be reduced from 12 to a maximum of 8 days per month.

The reasons for this new phase of cost-cutting are falling sales in China, U.S. tariffs, and high expenses for updating the model lineup. While Porsche sold around 320,000 cars a year three years ago, the company expects about 250,000 in 2026.