Asger Risom
Porsche is bracing for its biggest downturn in years as weak electric vehicle demand and global market pressures force the company to consider thousands of job cuts.
Porsche is bracing for its biggest downturn in years as weak electric vehicle demand and global market pressures force the company to consider thousands of job cuts.
Porsche Sales Fall Sharply
The German luxury brand expects to sell just 250,000 cars in 2025, down from 311,000 last year, as demand slows in key markets.
Thousands of Jobs at Risk
CEO Oliver Blume has warned that over 3,900 jobs could be cut in Germany by 2029, with more reductions under negotiation.
China Sales Plummet
Porsche’s sales in China, one of its most important markets, have fallen by 28% in the first half of the year, largely due to a fierce EV price war.
EV Profit Margins Lag Behind
While electric models like the Taycan and Macan Electric are crucial for meeting emissions rules, they generate far lower profit margins than combustion cars.
Tariffs Add to the Pressure
The company is also grappling with a weaker U.S. dollar and new tariffs under President Trump, further impacting profitability.
Operating Margins Decline
Porsche’s operating margin is projected to drop from 14.1% to as low as 6.5%, with shares down 29% in 2025 and early investors seeing losses of nearly 50%.
Leadership Shake-Up
To navigate the crisis, Porsche is restructuring its executive team, bringing in new leaders for finance, marketing, personnel, and procurement.
Taycan Recall Compounds Woes
A safety recall has forced Porsche to halt sales of some Taycan models after concerns over battery short circuits that could lead to fires.
Uncertain Road Ahead
With weaker EV demand, falling margins, and investor unease, Porsche faces one of its toughest challenges in decades as it rethinks its strategy.
