Porsche slashes costs and eyes move further upmarket after difficult 2025

Following a challenging 2025 financial year that saw operating profit plunge to €413 million from €5.64 billion the year before, Porsche has announced a sweeping restructuring plan aimed at making the company 'leaner and faster' and its products 'even more desirable'.

The German sports car manufacturer cited extraordinary expenses totalling €3.9 billion, including costs related to realigning its product strategy, its battery activities and US tariffs. Group sales revenue fell to €36.27 billion, with deliveries dropping by 10 per cent to 279,449 vehicles, primarily due to weakening demand in China.

CEO Dr Michael Leiters, who took the helm in October, is accelerating the 'Value over Volume' strategy by focusing on higher-margin segments rather than chasing sales volume. The company is exploring the possibility of expanding above the 911 and Cayenne in its model line-up, which could signal the development of a new supercar or flagship SUV.

Internal changes include streamlining management, reducing hierarchies and cutting bureaucracy. Porsche anticipates additional one-off earnings impacts in 2026, yet forecasts an operating return on sales ranging from 5.5 to 7.5 percent.

This announcement comes despite the recent launch of new products, including the 911 Turbo S with T-Hybrid technology and the all-electric Cayenne. Porsche is maintaining its commitment to offering multiple powertrain types while navigating what it describes as 'enormous challenges' in global markets.