Porsche will close three subsidiaries – an EV‑battery developer, a software unit and an e‑bike systems company – resulting in more than 500 job losses, the German luxury automaker announced on Friday. The cuts represent roughly 1 percent of the group’s 42,000‑strong global workforce.
The decision follows a sharp decline in profitability that Porsche attributes to weakened sales in China, the impact of U.S. tariffs and the costly slowdown of its electric‑vehicle transition. Michael Leiters, who became CEO at the start of the year, said the company must “refocus on its core business,” acknowledging that the restructuring will entail “painful cuts – including our subsidiaries.”
The e‑bike subsidiary will see the largest reduction, with 360 positions eliminated in facilities located in Germany and Croatia. The remaining job losses will occur at the battery‑technology and software subsidiaries. Porsche’s shares rose 1.7 percent on the Frankfurt exchange after the announcement.
The move comes after Porsche announced a further 1,900 job cuts in February 2023. The automaker, part of the Volkswagen Group, has been grappling with the broader challenges facing the German car industry: intense competition in China, sluggish demand in Europe and the complex shift toward electrification. Volkswagen’s own 2023 results showed a €1 billion loss linked to tariffs and the group’s electric‑vehicle strategy, underscoring the sector‑wide pressure.
Earlier this year Porsche signaled a pause in its full‑electric rollout, delaying the launch of several models and extending the life cycles of internal‑combustion and hybrid vehicles. While the company aims to preserve profitability, analysts note that the slowdown is likely to affect margins and sales through 2026.
The closures highlight the difficulty of balancing ambitious EV investments with immediate market realities. As Porsche trims its non‑core operations, the group will concentrate resources on its flagship sports‑car lineup and core automotive business, seeking to stabilise earnings amid a turbulent industry landscape.
