Porsche CEO targets July deadline for cost-cutting package

Porsche AG Chief Executive Officer Michael Leiters expects to finalize a second cost-cutting package by July, targeting lower production volumes and 1,900 job cuts as the German sports car maker grapples with profit erosion.

"We want to reach an agreement with the employees before the factory holidays in July. Porsche employees need clarity," Leiters told Frankfurter Allgemeine Sonntagszeitung in an interview published Saturday.

The company plans to reduce production capacity below the roughly 280,000 cars it sold last year, Leiters said. Porsche has already cut 2,000 temporary positions and will eliminate 1,900 more roles over the coming years. The entry-level 718 series will continue production, he added.

"Porsche has to make money with fewer cars," Leiters said, signaling a strategic shift away from volume growth toward higher-margin sales. The company also plans closer cooperation with sister brand Audi on future projects.

Porsche's profit eroded further in the first quarter of 2026 as the automaker faced mounting pressure from tariffs, geopolitical uncertainty and gaps in its model lineup. The cost-cutting push comes as luxury automakers across Europe contend with rising development costs for electric vehicles and softening demand in key markets including China.

The restructuring signals that Porsche's management sees structural, not cyclical, challenges ahead. Investors will watch the July deadline for details on the scope of savings and whether dividend policy or capital allocation plans shift as a result.

This article is for informational purposes only and does not constitute investment advice.