Porsche will eliminate more than 500 jobs and close three subsidiaries as part of a strategic realignment to sharpen its focus on its core business.
The cuts affect Cellforce Group in Kirchentellinsfurt, Porsche eBike Performance in Ottobrunn and Zagreb, and Cetitec in Pforzheim and Croatia.
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Porsche had 41,780 employees as of 31 December 2025.
Porsche chairman of the executive board Michael Leiters said: “We must refocus on our core business. This is the indispensable foundation for a successful strategic realignment. This forces us to make painful cuts – including our subsidiaries.”
Porsche said Cellforce no longer has a “sufficiently viable” long-term future under its technology-open powertrain strategy, with around 50 employees affected.
Porsche eBike Performance, set up to develop and market high-performance e-bike drive systems, will be discontinued due to “fundamentally changed market conditions,” affecting about 350 employees.
Cetitec, which develops data communication software for Porsche and the wider Volkswagen Group, will also enter closure talks after market conditions changed and development scopes shifted, affecting around 60 employees in Germany and 30 in Croatia.
The announcement follows broader restructuring steps, including Porsche’s agreement last week to sell its minority stakes in Bugatti Rimac and Rimac Group to a consortium led by HOF Capital, and a board reorganisation that reduces divisions from eight to seven and suspends the Car-IT division.
Porsche’s 2025 consolidated performance deteriorated sharply.
Sales revenue fell 9.5% to €36.27bn ($42.66bn), operating profit plunged 92.67% to €413m and profit after tax dropped 91.37% to €310m.
Announcing the results in March, the company said earnings were hit by “substantial one-off expenses” from product and battery realignment, including around €1.7bn tied to postponing some EV launches and “around €0.7bn” from battery activities.
It also said higher US import tariffs cut operating profit by “around €0.7bn,” while China suffered a “tangible decline in demand” and “very intense competition”.
In Q1 2026, revenue fell 5.17% to €8.40bn, operating profit dropped 21.91% to €595m, and profit after tax declined 24.51% to €391m.
Deliveries fell 14.66% to 60,991, and vehicle sales dropped 9.49% to 58,553. In China, deliveries were down 20.61% and sales fell 30.88%, while profit was also pressured by increased US tariff expenses.
