Porsche Races to Lock in Another Cost-Saving Package as Profit Slides
Published on 06/21/2026 at 20:54 | Redaktion boerse-global.de
Porsche chief executive Michael Leiters is pushing to finalise a second cost-cutting programme with labour representatives before the company’s annual plant shutdown in July. The move comes as the luxury sports-car maker grapples with a prolonged earnings slump and mounting operational pressure.
The new package follows a first restructuring round last year that eliminated roughly 3,900 positions — 1,900 regular jobs and 2,000 temporary contracts, the majority of which involved agency workers. Now Leiters wants to reinforce those cuts by permanently lowering output capacity and squeezing more efficiency from the company’s supply chain.
Porsche plans to keep annual production below 280,000 units, roughly matching last year’s volume. In a sign that the brand is recalibrating its targets, the CEO has stated clearly that the company must remain profitable even if sales volumes fall short of that ceiling. To help achieve that, Porsche will intensify cooperation with sister brand Audi.
The urgency stems from a dramatic profit reversal. Net profit in 2025 plunged by more than 90 percent, and the downward trend continued into the first quarter of 2026, which management blames on new tariffs, geopolitical turmoil and gaps in the model lineup. For the full current financial year, Porsche forecasts revenue of €35 billion to €36 billion, with a return on sales of between 5.5 and 7.5 percent. Analysts, by contrast, had been expecting an average margin of roughly eight percent.
Investors have taken a dim view. On 18 June, shares in Porsche Automobil Holding traded at €30.16, down 1.41 percent on the day and just a few cents above the 52-week low of €30.11. The stock’s peak over the past year stood at €41.52. The holding company’s current market capitalisation is about €9.19 billion, compared with annual revenue of €33.1 billion and a profit of €4.56 billion at last count.
Despite the belt-tightening, the entry-level 718 series will survive. Porsche has signalled that it plans to keep the model line alive, a reassurance for customers who feared the brand might drop its more affordable sports car as part of the efficiency drive.
The second package is expected to be agreed before the factory holiday break — a deadline that Leiters has set for himself to give the workforce clarity and to signal to markets that management is serious about fixing the company’s cost structure.
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