Porsche is preparing additional cost-cutting measures as it braces for lower production volumes ahead.
Porsche is putting the finishing touches on a new round of cost-cutting measures as the German automaker prepares for a period of reduced vehicle output. CEO Michael Leiters said negotiations with employee representatives are nearing completion, with an agreement expected before the company’s summer factory shutdown in July.
Talks over additional savings programs began last year as Porsche faced mounting challenges, including U.S. tariffs, weakening demand in China, and growing competition across Europe.
The latest measures will build on the company’s previously announced plan to eliminate roughly 3,900 jobs by 2029. Porsche also intends to scale back production volumes. According to Leiters, output will fall below last year’s level, when the company delivered about 280,000 vehicles worldwide.
Despite the lower production targets, Porsche is focused on maintaining strong profitability. To help achieve that goal, the automaker plans to deepen cooperation with fellow Volkswagen Group brand Audi.
Leiters, who took over as CEO in January, also emphasized the importance of retaining the entry-level 718 lineup as a way to attract new customers to the brand. Production of the latest gasoline-powered 718 Boxster and 718 Cayman models ended last year.
Once regarded as one of the Volkswagen Group’s biggest profit generators, Porsche has faced increasing pressure in recent years as global market conditions have shifted. Vehicle deliveries posted their steepest decline since 2009 last year, forcing management to revise the company’s financial outlook four times.
As demand softens and competition intensifies, Porsche appears to be entering a new phase—one focused less on volume growth and more on protecting margins and adapting to changing market realities.