Porsche plans to cut costs and introduce models positioned above the 911 as new CEO Michael Leiters looks to boost profits after a sharp revenue decline.
The move comes as automakers face multiple pressures, including tariffs, weak demand in China and the cost of revising past plans for rapid electrification.
Leiters is expected to accelerate cost-cutting efforts while focusing more on combustion engine vehicles as he prepares to present his first earnings update to investors.
However, broader geopolitical risks and global trade tensions, including potential economic disruptions related to conflicts in the Middle East, may complicate the company’s recovery.
Porsche said further job cuts would follow after profits were largely offset by a significant write-down linked to its new electric vehicle strategy.
In a letter to shareholders, Leiters said: “We will simplify our management structure, reduce hierarchy and reduce bureaucracy”.
Automakers have also struggled with a prolonged slowdown in China.
At the same time, tariffs introduced by US President Donald Trump are weighing on its performance in North America.
Porsche imports all the vehicles it sells in the United States, its biggest market, and the tariffs are said to cost it about 700 million euros ($809.2 million) in 2025.
Year-on-year totals fell 10% to 279,000 vehicles, while revenues fell 9.5% to €36.3bn.
Operating profit fell 92.7% to €413m from €5.6bn a year earlier.
The decline in revenues was partly driven by around €3.9bn in extraordinary costs.
This includes around 2.4 billion euros related to adjustments in product strategy and corporate restructuring, 700 million euros in additional battery-related costs and another 700 million euros tied to US tariffs.
The challenging year has also affected Volkswagen’s parent company, which has previously warned it may need to implement deep workforce cuts.
Volkswagen said it plans to cut 50,000 jobs by the end of the decade as it struggles with weak sales in China and North America.
The company also warned that fiscal 2026 is likely to remain difficult, especially in China where the luxury segment is under pressure and competition is intense, especially in fully electric vehicles.
Porsche added that geopolitical uncertainty and US tariff policies are expected to impact the market environment.
“Porsche targets cost-cutting as profits fall sharply” was originally created and published by Just Auto, a brand owned by Global Data.
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