Porsche plans to cut its workforce by a quarter and push pricier cars
Porsche unveiled a strategy through 2035 that would shrink its workforce by 25% in the medium term and cut management jobs by 40%. It also aims to raise prices on its top models by about 20% as it tries to earn more on fewer cars.
AI-assisted · US Brief desk · Sources listed below
What happened
Porsche presented a new strategy Wednesday at its development center in Weissach, Germany. Called "Sportwagenschmiede '35," or "sports car forge," the plan aims to make the carmaker profitable on fewer sales. It wants to break even at fewer than 200,000 vehicles a year.
Jobs: Porsche said its workforce will shrink 25% in the medium term, with a longer-term target of 30%. Management positions will fall by 40%. A deal already agreed with worker representatives includes 9,000 job cuts, which the company calls "socially responsible," and protects core jobs until 2035.
Prices and products: Porsche wants to raise the average price of its top models by about 20% and expand custom options. It plans about 20% fewer model versions. Electric 718 Boxster and Cayman models are due, with 2028 their first full production year. A new small SUV with gas and plug-in hybrid engines will be presented in 2028.
Why it matters
Porsche has been facing falling profits, The New York Times reported. The company said its plan assumes a "very conservative forecast for China." It has already sold its stakes in Rimac and Bugatti Rimac and plans to shut down the Cellforce Group's development and production work.
More context
It is also developing a mid-engine supercar platform for a model line above the 911. Porsche plans a preview on Oct. 15.
Profit goals: Porsche is targeting an operating return on sales of 10% to 15% in the medium term and 15% in the long run. It aims for group sales of €41 billion to €45 billion. "At the moment, the main focus is on reducing costs and making the company more financially robust," CEO Michael Leiters said.
4 listed sources
- Porsche Newsroom, Oct 7, 2026: Porsche presents new strategy through to 2035
- The New York Times, Oct 7, 2026: Porsche, Facing Falling Profits, Plans to Cut 25% of Its Work Force (headline)
- U.S. News & World Report, Oct 7, 2026: Porsche Braces for Lower Sales Era, Seeks Lifeline From Luxury
- Sourcing note: Primary company release plus business press headlines; no political lean.
References listed by US Brief; a source count is not a verification score.
Editorial sourcing notes
Targets are Porsche's own and were presented to investors; the company did not give a current headcount in its release. "Medium term" is Porsche's wording and was not defined as a specific year.
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