Porsche to slash more jobs as profit slumps 91 per cent
German sports car maker Porsche said it plans to cut more jobs after recording a 91 percent drop in 2025 profits.
Porsche CEO Michael Leiters said earlier this year that a process to streamline the firm was already “in place” before taking the job.
This process will now be “further tightened” and will include “additional layoffs”, the official said. in question During the presentation of Porsche’s 2025 figures in Stuttgart.
Leiters did not specify a specific number of positions to be dropped, citing planned talks with all parties involved.
On Wednesday, Leiters also announced plans to streamline its management structure in an effort to ease the automaker’s woes.
According to a previous agreement between the company and employee representatives, 1900 people are planned to be laid off by 2029 in the Stuttgart region, where the company is headquartered.
Porsche said on Wednesday its net profit fell in 2025 as billions of euros in costs linked to a switch back to internal combustion engine models put pressure on earnings.
The DAX-listed sports car maker said net profit fell 91.4 per cent to 310 million euros ($A503 million) from around 3.6 billion euros a year ago.
Revenue fell by almost a 10th to around 36.3 billion euros.
The company faced several headwinds last year: Sales in China slowed, U.S. tariffs added significant costs, and demand for Porsche’s electric models fell well short of expectations.
Before resigning, former CEO Oliver Blume revised the company’s strategy, expanding its range of internal combustion engine vehicles to support sales.
The change has proven costly.
Porsche has allocated approximately 2.4 billion euros in expenses in connection with the change in strategy.
US tariffs had a similar financial impact, with the closure of a battery subsidiary incurring costs of around 700 million euros.
Total private costs therefore amounted to roughly 3.9 billion euros.
Operating profit fell by 92.7 percent to 413 million euros.
Operating profit in its core car business, excluding financial services, fell to 90 million euros from around 5.3 billion euros in the previous year, according to figures from parent company Volkswagen.
Porsche expects business to improve this year but warned market conditions will remain challenging.
New CEO Leiters said geopolitical uncertainty continues and the potential impacts of recent developments in the Middle East are not taken into account in the outlook.
Leiters took over from Blume at the beginning of the year after Blume shifted his focus to leading Volkswagen.
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