No bonus for Porsche employees as car maker struggles
Employees at Porsche will not receive bonuses for fiscal 2025 due to the German luxury car maker’s poor results.
A spokesman for the Stuttgart-based manufacturer confirmed on Thursday that no bonuses would be awarded “due to the financial situation of the company”.
Porsche is known for giving its employees hefty bonuses in Germany and has paid them out every year since at least 2007, but the sports car giant’s profits have fallen in recent years.
In March, the automaker reported a slump in profit in the 2025 financial year, falling 91.4 percent year-on-year to 310 million euros ($A507 million) from 3.6 billion euros in 2024.
Turnover fell by almost a tenth to 36.3 billion euros as business stopped in China, US tariffs hit sales and demand for electric models was much less than expected.
The company, a subsidiary of the Volkswagen Group, decided to overhaul its strategy and offer more cars with internal combustion engines, in a shift that cost 2.4 billion euros.
Porsche announced layoffs and a cost-cutting program.
Basic wages are also frozen, while management will not receive bonuses.
But shareholders can expect dividends, although they fell to 1.01 euros per share from 2.31 euros last year.
The automaker expects “very challenging market conditions” to continue into 2026, with sales falling again between January and March.
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