Porsche AG is moving quickly to finalize a second cost-cutting package as pressure builds on profitability and production strategy.
Chief Executive Michael Leiters said the company aims to reach an agreement with employees before factory holidays in July.
“We want to reach an agreement with the employees before the factory holidays in July. Porsche employees need clarity,” Leiters said in an interview with Frankfurter Allgemeine Sonntagszeitung.
The plan comes as the luxury carmaker continues restructuring efforts across its workforce.
Porsche Job Cuts and Workforce Restructuring
The company has already announced plans to cut 1,900 jobs in the coming years, after removing about 2,000 temporary workers last year.
The moves reflect wider pressure across Germany’s automotive sector as firms adjust to weaker earnings and shifting demand.
Automotive Production Capacity and Volkswagen Group Strategy
Volkswagen AG is also linked to the broader restructuring strategy, as Porsche plans closer cooperation with its sister brand Audi.
Leiters said Porsche will operate with lower production capacity than the roughly 280,000 vehicles sold last year.
“Porsche has to make money with fewer cars,” he said.
The entry-level 718 series will continue, but the company is rethinking scale and efficiency.
Profit Pressure and Automotive Market Challenges
Porsche Automobil Holding SE has seen profits weaken further in Q1 2026. The company cited tariffs, geopolitical tensions, and gaps in its model lineup as key pressures.
Analysts say the restructuring reflects a broader shift in the European luxury auto market, where cost discipline is becoming as important as brand prestige.
Read also: The $1bn exit: Why Porsche just sold Bugatti
