Documents outlining a recent agreement by Volkswagen's supervisory board reportedly propose cutting about 4,100 positions at Porsche in an effort to address an estimated €700 million ($803.8 million) shortfall in overhead costs.
According to Handelsblatt, the proposed reductions would come on top of job-cutting agreements already reached at the Stuttgart-based luxury sports-car manufacturer.
The report adds another layer of pressure on Porsche, which is struggling with falling sales in China and the financial consequences of changes to its electric-vehicle strategy.
In July, Porsche management and labour representatives agreed to eliminate a further 5,000 jobs, following an earlier agreement covering 4,000 positions.
Those measures mean the number of currently agreed job reductions could eventually amount to about one in five Porsche employees by 2035.
Volkswagen declined to comment on the reported plans, while a Porsche spokesperson also declined to comment on the contents of the documents cited by Handelsblatt.
Although Volkswagen is Porsche's parent company, it can recommend measures at the sports-car division but cannot directly mandate them.
The latest reported cuts come after Volkswagen on Friday lowered its full-year operating margin forecast, reflecting mounting financial pressure across the group.
The company now expects its operating margin to be as low as 1%, compared with its previous forecast of between 4.0% and 5.5%.
A significant factor behind the downgrade was a writedown involving Porsche, highlighting the challenges confronting the sports-car brand as it attempts to rebuild its performance.
Porsche chief executive Michael Leiters is under pressure to deliver a turnaround strategy after a sharp decline in sales in China, one of the world's most important automobile markets, combined with the costs associated with changing course on the company's electric-vehicle strategy.
The reported restructuring underscores the scale of the challenges facing Porsche and its parent company as Volkswagen seeks to reduce costs and restore profitability while the global auto industry undergoes a major shift towards electric vehicles.
For Porsche, the pressure is particularly acute as the company attempts to balance its traditional high-performance sports-car business with changing consumer demand, tougher competition and the substantial investment required to develop and manufacture electric models.
The latest reported proposal would add to an already significant restructuring programme and could further reshape Porsche's workforce over the coming decade.