Porsche has revealed plans for further job reductions after its financial results for 2025 were severely impacted by a €3.9 billion ($4.5 billion) write-down linked to reversing its electric vehicle strategy. The company has also faced ongoing weakness in Chinese sales and the financial effects of U.S. import tariffs.
The German luxury automaker reported operating profit of €413 million ($478 million) in 2025, representing a dramatic 92.7% decline from €5.64 billion ($6.53 billion) recorded the previous year.
The downturn followed a series of four profit warnings issued last year. Those warnings contributed to Porsche being removed from Germany’s blue-chip DAX index after the company’s stock value dropped by more than 30%.
Against this challenging backdrop, Porsche CEO Michael Leiters, who assumed the role on January 1, said the company will implement further layoffs beyond the previously announced plan to eliminate 3,900 positions by 2030. In addition, roughly 2,000 temporary positions have already been removed.
With a global workforce of about 40,000 employees, the move indicates that well over 10% of Porsche’s staff will ultimately be cut. These reductions are part of a broader restructuring effort within the Volkswagen Group, which plans to eliminate approximately 50,000 jobs in Germany by the end of the decade.
“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 additional details will be announced later this fall.
Porsche also reported that global deliveries fell by 10% last year, totaling 279,000 vehicles. The decline contributed to a 12% drop in revenue, which fell to €32.2 billion ($37.2 billion). China accounted for around 15% of total deliveries in 2025, down from 18% the previous year, as domestic Chinese automakers intensified competition.
Further pressure came from the United States, Porsche’s largest market. The 15% import tariffs introduced by U.S. President Donald Trump have negatively affected the company’s sales performance there. Because Porsche imports every vehicle it sells in the U.S., those tariffs cost the automaker approximately €700 million ($810 million) during 2025.
“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 strategy involves increasing the number of models powered by internal combustion engines, which remain both more profitable and more popular with customers. As part of that shift, Porsche has postponed several upcoming electric vehicles. Among them are the fully electric versions of the 718 Boxster and Cayman sports cars, which are now expected to launch in 2027.
Additionally, Porsche has delayed its K1 electric flagship SUV until around 2029. The model may no longer be exclusively electric, as hybrid and gasoline-powered versions are reportedly being considered.
Leiters also indicated that Porsche is exploring opportunities to expand into higher-margin market 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, suggesting the potential development of a new halo sports car as well as the K1 three-row SUV flagship.
