Porsche Cuts 25% of Workforce as Profit Margin Falls to 1.1%
Updated
Updated · The New York Times · Oct 7
Porsche Cuts 25% of Workforce as Profit Margin Falls to 1.1%
1 articles · Updated · The New York Times · Oct 7
Summary
Porsche said it will cut a quarter of its workforce, scale back its China ambitions and refocus on higher-priced sports cars as it shrinks into a leaner company.
A 1.1% profit margin last year — down from 18% two years earlier — reflects the hit from weaker China demand, Trump tariffs and an expensive retreat from its earlier EV strategy.
China, once more than a third of Porsche’s sales volume, is expected to account for only 1 in 10 deliveries by 2030, underscoring how sharply its biggest growth market has faded.
The overhaul matters beyond Porsche because the brand, 75% owned by Volkswagen, had long been one of the group’s main profit engines and is now central to Volkswagen’s broader turnaround.