Porsche has announced it will cut more jobs after the company’s profits for 2025 were largely erased by a costly €3.9 billion ($4.5 billion) write-down on reversing its EV strategy, persistent sales slump in China, and U.S. import tariffs.
The luxury car manufacturer saw its operating profit collapse 92.7% to €413 million ($478 million) in 2025 from €5.64 billion ($6.53 billion) the year before. That comes after Porsche received four profit warnings last year that contributed to it being removed from Germany’s top-tier DAX index after its stock lost more than 30% of its value.
The Previously Announced 3,900 Job Cuts Are Not Enough
In this very difficult context, Porsche CEO Michael Leiters, who was appointed on January 1, said the company is forced to make more job cuts in addition to the previously announced 3,900 layoffs by 2030; around 2,000 temporary jobs have already been cut.
Since Porsche employs approximately 40,000 people, it means that significantly more than 10% of its workforce will be eliminated. Porsche's job cuts will be part of a total of 50,000 staff reductions parent company Volkswagen Group plans to make in Germany by 2030.
“The streamlining of the company needs to be sharpened and this will lead to further job reductions,” said Leiters on March 11 during Porsche’s annual press conference. “We will streamline our management structure, reduce hierarchies and cut back on bureaucracy,” he added, noting that more details will follow this fall.
Porsche also said global deliveries declined 10% to 279,000 vehicles last year, causing revenue to fall 12% to €32.2 billion ($37.2 billion). China made up about 15% of the automaker’s deliveries, down from 18% the previous year, amid rising competition from domestic manufacturers.
As if that wasn’t enough, the 15% import tariffs imposed by U.S. President Donald Trump have also hurt Porsche’s sales in the U.S., its biggest market. As the company imports all of the vehicles it sells in the U.S., the tariffs cost it around €700 million ($810 million) in 2025.
Focus on More Profitable and Desirable Cars
“We are using the current challenges as an opportunity to act even more decisively. We will comprehensively reposition Porsche, make the company leaner, faster and the products even more desirable,” Leiters said.
One way to do that is add more vehicles powered by internal combustion engines, which are more profitable and in demand. Porsche has delayed several planned electric car models, including the electric versions of the 718 Boxster and Cayman sports cars, which are now expected to arrive in 2027.
In addition, the Porsche K1 electric flagship SUV has been pushed to around 2029 and it won’t be EV-only, with hybrid and gas options reportedly on the table.
Porsche’s CEO also said the company is considering the expansion of its product lineup to higher-margin segments. “In doing so, we are looking at models and derivatives both above our current two-door sports cars and above the Cayenne,” Leiters said, hinting at a new Porsche halo sports car and the K1 three-row SUV flagship.
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