Porsche to cut more jobs after costly reversal of electric car strategy

"The streamlining of the company needs to be sharpened and this will lead to further job reductions. We will streamline our management structure, reduce hierarchies and cut back on bureaucracy, said Leiters, adding that more details would come in the autumn."

"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."

"Operating profit fell to 413m from 5.6bn the previous year. Porsche said total deliveries fell 10% to 279,000 cars, causing revenue to slump 12% to 32.2bn."

Porsche faces significant financial challenges requiring deeper restructuring beyond previously planned cuts. New CEO Michael Leiters, appointed January 1st, announced further job reductions beyond the 3,900 cuts targeted by 2030 from the company's 40,000 workforce. A 3.9 billion euro writedown resulted from reversing the ambitious electric car strategy. Sales declined 10% to 279,000 vehicles with revenue dropping 12% to 32.2 billion euros. Operating profit collapsed from 5.6 billion to 413 million euros. China deliveries fell from 18% to 15% of total sales amid intense local competition. Trump's tariffs cost approximately 700 million euros in North America, Porsche's largest market. Management restructuring, hierarchy reduction, and bureaucracy cuts are planned with details expected in autumn.

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