Asger Risom
Porsche is facing mounting financial pressure from weak EV demand, plunging sales in China, and tariffs. CEO Oliver Blume has warned employees that drastic cost-cutting measures are on the way.
Porsche is facing mounting financial pressure from weak EV demand, plunging sales in China, and tariffs. CEO Oliver Blume has warned employees that drastic cost-cutting measures are on the way.
Porsche Faces Harsh Market Reality
Global Porsche sales fell three percent last year and continued to drop by six percent in the first half of 2025, showing the brand’s challenges are deepening.
CEO’s Stark Warning to Employees
Oliver Blume told staff that Porsche’s long-successful business model “no longer works in its current form,” signalling major restructuring ahead.
Tariffs and EV Demand ‘Hitting Us Hard’
Blume cited falling demand for electric cars and rising costs from Trump-era tariffs as key reasons for the company’s worsening financial performance.
Job Cuts on the Horizon
Porsche plans to eliminate 1,900 jobs by 2029, with more cost-saving measures likely. Additional job cuts have not been ruled out as sales decline.
Iconic Sports Cars Set to End
The current-generation Boxster and Cayman will cease production in October. Electric replacements are not expected until 2026.
Struggles With EV Sales
The Taycan, Porsche’s first EV, saw sales plummet by 49 percent in 2024 and another six percent in early 2025. The electric Macan is faring better but may not offset losses.
Trouble in China
China, once a key growth market, has seen Porsche sales plunge by 28 percent in both 2024 and the first half of 2025, as local EV makers gain ground.
Shifting EV Strategy
Porsche has abandoned its goal of making 80 percent of sales electric by 2030. The company is now reconsidering combustion-engine variants for upcoming models.
The Road Ahead for Porsche
With its core markets under pressure, Porsche is betting on new electric SUVs and potential gasoline crossovers, but recovery is far from guaranteed.
