Porsche's supervisory board has formally backed an ongoing savings package that, according to media reports, could lead to thousands of additional job losses at the Stuttgart-based carmaker. Negotiations between management and worker representatives have been running for several months, and this latest supervisory board endorsement signals that deeper cuts are coming. For expats and international workers employed in Germany's automotive industry — one of the country's largest employers of skilled foreign labour — this is a development worth following closely.
The supervisory board's approval does not yet mean final decisions have been made about exact numbers or which departments will be affected. German labour law requires a formal negotiation process between management and the Betriebsrat (works council) before any large-scale redundancies can take effect. This process, known as a Sozialplan, determines severance conditions, timelines and support measures for affected employees.
Media reports suggest the cuts could run into the thousands, adding to earlier rounds of restructuring already announced at Porsche. The broader context is a difficult period for Germany's car industry: falling demand for electric vehicles, rising production costs and increased competition from Asian manufacturers have all contributed to financial pressure across the sector.
For expats working at Porsche or in the wider automotive supply chain, a redundancy scenario carries specific implications beyond those facing German nationals.
Residence permit and right to stay: If your Aufenthaltstitel is tied to your employment (for example, a work visa or EU Blue Card), losing your job does not immediately mean you must leave Germany. Under current rules, Blue Card holders who lose their job have up to three months to find new employment before their permit is affected. Holders of other work-based residence permits should check the exact conditions with their Ausländerbehörde.
Unemployment insurance (Arbeitslosengeld I): If you have paid into the German Rentenversicherung and social security system for at least 12 months in the past 30, you are entitled to Arbeitslosengeld I (unemployment benefit), regardless of nationality. Register with the Agentur für Arbeit immediately — ideally before your last working day — to avoid losing benefit days.
Severance and Sozialplan: Foreign workers covered by a collective agreement or Sozialplan have the same contractual rights as German colleagues. Check whether your contract falls under a Tarifvertrag and consult your works council representative or a labour lawyer if you are unsure.
Porsche is not alone. Volkswagen, BMW suppliers and several Tier-1 manufacturers have all announced restructuring measures in recent months. Germany's Federal Employment Agency (Bundesagentur für Arbeit) has noted a rise in Kurzarbeit (short-time work) applications from the automotive sector. This government-backed scheme reduces working hours while partially compensating workers' lost wages — and is available to foreign employees on valid work permits.
If your employer has not yet mentioned Kurzarbeit, it may be worth asking your HR department or Betriebsrat whether it is being considered, as it can delay or reduce redundancies.
It depends on your permit type. EU Blue Card holders have a statutory three-month job-search period. Holders of a general work residence permit should contact their Ausländerbehörde as soon as possible to clarify their specific situation. Do not wait until the permit expires.
Yes, if you have contributed to the German social security system for at least 12 months in the previous 30 months. The benefit is called Arbeitslosengeld I and is administered by the Agentur für Arbeit. Register as job-seeking (arbeitssuchend) as early as possible — by law, you must do so at least three months before your contract ends, or within three days of receiving notice if the notice period is shorter.
A Sozialplan is a negotiated agreement between the employer and the works council that sets out redundancy terms — severance pay, outplacement support, early retirement options, etc. Foreign employees on standard employment contracts have the same rights under a Sozialplan as German employees.
No final redundancy figures have been confirmed yet, and formal works council negotiations must still take place. However, if you work in Germany's automotive sector, now is a good time to review your employment contract, understand your permit conditions, and make sure you know your rights under German labour law. Consult your Betriebsrat or a qualified employment lawyer if you receive any formal notice.
Source: Tagesschau
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