Porsche Targets New Cost-Cutting Package by July

Porsche seeks agreement on second cost‑cutting package before July holidays

Porsche AG announced that it aims to reach an agreement with its employees on a second cost‑cutting package before the factory holidays commence in July, according to a Reuters report citing an interview with CEO Michael Leiters in the Frankfurter Allgemeine Sonntagszeitung. Leiters emphasized the need for clarity for Porsche staff ahead of the holiday period.

The automaker is negotiating additional measures to improve efficiency and adapt to weaker demand conditions. Earlier in the year, Porsche disclosed plans to eliminate 1,900 permanent positions over the coming years and had already reduced its temporary workforce by roughly 2,000 employees in the previous year.

Production guidance indicates that Porsche expects to manufacture fewer vehicles than the approximately 280,000 units it sold in 2025, reflecting a strategic shift to “make money with fewer cars,” as Leiters put it. Despite the reduced volume target, the company intends to retain its entry‑level 718 model series within the product lineup.

Leiters also signaled an intention to expand cooperation with sister brand Audi. The two Volkswagen Group marques already share vehicle platforms, technology, and development resources across several models, and the planned deeper collaboration is aimed at further cost efficiencies.

The comments come amid a challenging operating environment. In May, Porsche reported a further decline in first‑quarter profit, attributing the downturn to the impact of tariffs, geopolitical tensions, and gaps in its product portfolio. The firm is also contending with softer demand in key markets, notably China, where domestic electric‑vehicle manufacturers are intensifying competition against European brands.

To address these pressures, Porsche has been reviewing its investments and cost structures while continuing development of future vehicle programmes. The ongoing cost‑cutting discussions form part of broader efforts to improve profitability and align production with expected demand levels.