Business · Companies · 14 hrs ago
Porsche plans cost cuts, job reductions and more high-end models
Porsche, the German sports-car maker, is trying to recover from falling sales and a sharp drop in profit.
Chief executive Michael Leiters has set out a plan that includes lower costs, fewer jobs and more expensive models.
The company aims to reduce its workforce of about 42,000 by 25 percent in the medium term, with a strategic goal of 30 percent; it says agreed cuts will be made without dismissals.
Porsche also plans to offer fewer versions of its six model lines and sell a larger share of high-end cars.
It expects two-thirds of its cars to have petrol engines and one-third to be electric, while plans include a petrol-powered successor to the Macan by 2028.
Sales have fallen sharply in China, where Porsche says it will keep looking for market niches, while it sees growth potential in the United States.
The company aims to return to its former strength within five years and keep targeting an operating margin of 10 to 15 percent.
Porsche plans broad cost cuts, job reductions and more high-end models as it seeks to overcome a crisis.
The company aims to reduce its workforce of about 42,000 by 25 percent over the medium term, with a strategic target of 30 percent.
Porsche has agreed with its works council to cut 9,000 jobs by 2035, including a package of 5,000 jobs agreed in the summer.
The share of sales from its two top model segments is planned to rise from one-third to about 45 percent.
Porsche expects two-thirds of its cars sold to have petrol engines and one-third to be electric.
- Who
- Porsche, under chief executive Michael Leiters.
- What
- The company plans cost cuts, job reductions and a greater focus on high-end models.
- When
- The plans were reported on 11 October 2026. The agreed job cuts extend to 2035.
- Where
- Porsche is headquartered in Germany, with production sites including Zuffenhausen and Leipzig.
- Why
- Porsche is seeking to overcome a crisis and return to stronger performance as sales shrink.
This story does not have two clearly opposing sides.
I can assure you - the 911 will never be electric.
We will not give up this market.
Nobody can hide behind the organisation, everyone must take responsibility for their part.
China accounted for 35 percent or more of Porsche sales at its peak, with more than 90,000 vehicles.
Porsche agreed a package involving 5,000 job cuts.
A successor to the smaller Macan SUV with a combustion engine is due to arrive.
The agreed workforce reduction is set to reach 9,000 jobs.
- Workforce
- Around 42,000 employees; planned medium-term reduction of 25 percent, with a strategic target of 30 percent.
- Agreed job cuts
- 9,000 by 2035, including a 5,000-job package agreed in the summer.
- Top model segments
- Planned to rise from one-third to around 45 percent of sales.
- China sales
- Analysts expect 25,000 vehicles this year, and Porsche expects the market share to fall below 10 percent.
- Sales mix
- Porsche plans for two-thirds of sales to be petrol-powered and one-third electric.
Sources
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