Porsche faces cost reduction measures

Main information – Porsche faces cost reduction measures

• Porsche faces market challenges and implements cost reduction measures.
• Negotiations on restructuring will start in 2025 to ensure long -term viability.
• Financial performance has decreased due to factors such as the weakness of the luxury cars market in China. Consequently, the increase in costs related to the transition to electric mobility.

Porsche faces significant challenges – Porsche faces cost reduction measures

Porsche. However, the emblematic manufacturer of sports cars, is faced with significant challenges and implements new cost reduction measures to deal with it. However, CEO Oliver Blume informed employees of the need for these measures in a letter. Furthermore, highlighting the rapid development of the car landscape. This is what Manager Magazin reports.

Blume recognizes the severity of the situation. underlines the need for Porsche to be flexible and to adapt quickly to porsche faces cost reduction measures market developments. He announces that negotiations for a second restructuring plan will begin in the second half of 2025. in order to ensure the long -term viability of the company. Although the details concerning the deletions of potential jobs remain vague. Blume underlines the importance of respectful and confidential discussions with the works council.

Restructuring measures announced

Porsche has already announced its intention to remove 1,900 jobs in the Stuttgart region by 2029 through voluntary measures. Employees currently benefit from employment security until 2030, which excludes any involuntary dismissal.

Blume attributes the current difficulties to a “crisis in framework conditions”, citing several factors which contribute to it. The luxury cars market in China has suddenly slowed down. while increased customs duties and dollar fluctuations have a negative impact on Porsche activities in the United States. In addition. the slower than expected transition to electrical mobility requires substantial investments in the porsche faces cost reduction measures flexibility of the powertrain, which should cause additional costs of up to 1.3 billion euros this year.

Affected financial performance

These challenges are reflected in the financial performance of Porsche. After a drop in 2024, the company’s operating profit for the first quarter of 2025 fell 40.6 percent from the previous year, reaching 0.76 billion euros. Turnover is also lower than that of the previous year, at 8.86 billion euros. Consequently, Porsche has revised its forecasts for 2025. The management plans to present the complete financial results of the first half by the end of July. Porsche recently reported a drop in sales volume, especially in China. (em)