Stories
Porsche to Cut 9000 Jobs and Raise Sportscar Prices in Major Strategy Overhaul
- •Porsche plans to cut 9000 jobs and reduce its workforce by 25 to 30 percent in a major cost-cutting strategy.
- •The company aims to raise top-end sportscar prices by about 20 percent under its new Value over Volume principle.
- •Porsche will expand its Sonderwunsch customisation programme and cut model variants by about 20 percent.
- •Plans include developing a mid-engined super sports car platform and exploring a new SUV positioned above the Cayenne.
- •Porsche's operating margin fell to 1.1 percent last year, and the turnaround strategy targets a medium-term return on sales of 10 to 15 percent.
Key Questions Answered
Porsche has announced a new turnaround strategy called “Sportwagenschmiede '35” presented at its Capital Markets Day, which includes a planned cut of 9,000 jobs under an agreement with employee representatives to secure core workforce jobs until 2035 and restore company profitability.
Porsche plans to raise the average selling price of its top-of-the-range models by about 20% in the medium term while sticking to a “Value over Volume” principle. Additionally, the company will cut model variants by roughly 20% to lift sales per variant by about 30%, expand its Sonderwunsch customisation programme, and develop a mid-engined super sports car platform.
Porsche's earnings and profitability were severely impacted by costly missteps on electrification, a sharp plunge in vehicle sales in China, permanent US tariffs, and restructuring costs.
