Porsche is scaling back its ambitious production plans as new CEO Michael Leiters moves to downsize the company and restore profitability.
The automaker had previously aimed to sell between 350,000 and 400,000 vehicles annually under former boss Oliver Blume, but those targets are now being abandoned.
>>> Joe Mazzulla Named NBA Coach of the Year After Leading Celtics to 56 Wins
Leiters, who previously led McLaren, took over Porsche amid declining sales and a sharp drop in profit margins.
Last year, Porsche's operating margin fell to just over 1%, hurt by weak EV sales and a downturn in key markets like the US and China.
The company sold roughly 280,000 vehicles last year, down more than 30,000 from the previous year.
The trend has continued into 2025, with first-quarter sales falling 15%.
Production and Workforce Cuts
According to German business daily Handelsblatt, Leiters wants to reorganize Porsche to be profitable while producing around 200,000 vehicles annually.
By the end of the decade, the company aims for an operating margin between 10% and 15%.
Leiters is in negotiations with the German works council to cut costs, which will result in job losses.
>>> Corbin Carroll Praises Nolan Arenado's Work Ethic with Diamondbacks
The number of affected workers is unclear, but many cuts could be concentrated at Porsche's development center in Weissach, which employs about 5,200 staff.
An insider suggests a quarter of those jobs are at risk.
Porsche has already announced the dissolution of its Car-IT division, reducing the number of divisions from eight to seven.
The executive board may also shrink from seven to six members, as it was under former CEO Matthias Müller.
Sales chief Matthias Becker could lose his job, having been partly blamed for Porsche's sales decline in China.
Becker was notably absent at the recent Beijing Auto Show.
>>> Thunder Limit Wembanyama to 20 Points, Take 3-2 Series Lead Over Spurs
Porsche also faces overcapacity issues and may merge its production and procurement divisions to address them.
