Porsche plans to eliminate roughly 9,000 jobs by 2030 as it reshapes its business. The cuts represent about 25% of the sports car maker’s workforce. The company said reductions could reach 30%, including cuts already announced. Falling Chinese sales and a costly reversal of its electric-vehicle strategy worsened the pressure.
On 7 October, Chief Executive Michael Leiters presented the restructuring plan near Stuttgart. The announcement came during a Capital Markets Day at Porsche’s Weissach Development Centre.
Called Sportwagenschmiede ’35, the strategy focuses on fewer sales and more expensive vehicles. Porsche wants stronger profits without chasing its earlier sales volumes at any cost.
The company’s profit margin fell to 1.1% last year, Reuters reported. Two years earlier in 2023, it was 18%. In comparison, ’s profit margin in 2025 was 29.5%, far above its competitors. In the same year, Skoda’s profit margin was 8.3%, Mercedes-Benz’s 5% and Volkswagen’s 2.8%.
Porsche now aims for an operating margin between 10% and 15% over time. Its longer-term target is 15% although recovery will take several years.
Job reductions form a part of the effort to lower expenses. Porsche plans to reduce production personnel costs by up to 30%. Management positions face a 40% cut. Development costs could fall by up to 20%. These targets show that the restructuring extends beyond factory workers to leadership and development.
China remains central to the company’s difficulties. Sales there dropped nearly a third during the year’s first six months, according to The New York Times.
China once accounted for more than a third of ’s total sales. By 2030, its share could shrink to around 10%. Leiters said returning to earlier levels at any cost would not benefit the brand.
Rise in car prices
Porsche is instead placing emphasis on expensive sports cars, including the 911. It aims to raise average prices for top models by around 20%. The number of model variants could also fall by roughly 20%.
Porsche wants to cover its costs while selling fewer than 2 lakh vehicles. Last year, it delivered 2,79,449 vehicles worldwide.
Its product plans include electric 718 Boxster and Cayman models in 2028. A new combustion-engine SUV and a supercar platform above the 911 are also planned. These moves accompany its effort to strengthen demand for higher-priced models.
The difficulties also affect , which owns 75% of Porsche. Volkswagen’s wider restructuring targets 1 lakh job cuts across the group. Porsche’s decline contributed to Volkswagen’s €6 billion write-down disclosed last month.
Meanwhile, American tariffs added €700 million in costs last year, The New York Times reported. Porsche shares initially rose 5% after the update, before reversing those gains.