Porsche said it would cut 5,000 jobs, the latest warning sign from Germany's troubled car industry. The sports-car maker announced the cuts Monday as part of a broader agreement with worker representatives and their powerful union.

Under the deal, the company will reduce staffing levels through early retirement and other voluntary measures while guaranteeing the future of its core German sites and investing the equivalent of $2.4 billion through 2035.

The move to reduce costs is part of new Chief Executive Michael Leiters' plan to revive the fortunes of the storied automaker, which has been hit by a collapse in sales in China, U.S. tariff increases and a premature bet on electric vehicles.

The pact with workers "gives us the opportunity to strategically realign our company and invest in our competitiveness," Leiters said.