Porsche to cut 9,000 jobs and 40% of management roles under new mid-term strategy
In short
Porsche presented its "Sportwagenschmiede '35" strategy at a capital markets day at its Weissach R&D centre on October 7, including an agreement with employee representatives to cut 9,000 jobs and plans to reduce management positions by 40% in the mid term. The company targets a group return on sales of 10% to 15% and an automotive net cash flow margin of 9% to 12% in the mid term, and aims to break even at annual sales below 200,000 vehicles.
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Porsche AG presented its mid-term strategy "Sportwagenschmiede '35" at a capital markets day held at its Weissach research and development centre on October 7, Huxiu and Jiemian reported. The company has agreed a "future package" with employee representatives under which 9,000 jobs will be cut, while jobs for the core workforce are safeguarded until 2035. Management positions are to fall by 40% in the mid term, and headcount in direct and indirect functions by 25%, with a strategic target of 30%. 36Kr, citing Sina Finance, described the 25% cut as applying to staff numbers overall. Jiemian headlined its report as layoffs of up to 30% and said the plan marks a clear return to combustion-engine cars. [ 1 , 2 , 3 ]
"The strategy will lay the foundation in three phases for Porsche to significantly increase efficiency, productivity and profitability. The current focus is on reducing costs and strengthening the company's financial robustness. We have already achieved several important milestones," executive board chairman Michael Leiters said, according to Jiemian. The company has sold its stakes in Rimac and Bugatti Rimac and signed an agreement to sell consulting subsidiary MHP; Jiemian added that it plans to close the Cellforce group, its e-bike business and Cetitec's R&D and production operations. [ 2 , 3 ]
For the mid term, Porsche targets a group return on sales of 10% to 15%, an automotive net cash flow margin of 9% to 12% and group revenue of 41 billion to 45 billion euros; long-term targets are a 15% return on sales and a 12% net cash flow margin. It aims to break even at annual sales below 200,000 vehicles. Huxiu said the targets rest on a very conservative forecast for the Chinese market, and compared them with a 7.8% return on sales and revenue of 17.2 billion euros in the first half of 2026, and 2026 guidance of a 5.5% to 7.5% return on sales and revenue of 35 billion to 36 billion euros. [ 1 , 2 , 3 ]
On products, Porsche plans to cut model derivatives by about 20%, raising average volume per derivative by about 30%, and to raise the share of higher-margin D and E segment models by about 45%. It is developing a mid-engine hypercar platform for a new series above the 911. Electric 718 Boxster and Cayman models are expected to support sales in 2028, their first full production year, and a new B-segment SUV with combustion and plug-in hybrid drives will be sold alongside the electric Macan. Porsche also aims to raise average prices of top models by about 20% and Sonderwunsch personalisation revenue to six times the current level. [ 2 , 3 ]
On costs, Porsche aims to cut development costs for future model lines by up to 20%, production labour costs by up to 30% and sales and distribution costs by 20%. Porsche Engineering and Porsche Digital will merge into Porsche Technologies. Jiemian added that sales regions will be reduced from five to four, material costs per vehicle on new projects are to fall by about 10%, and an employee share plan is to be proposed for 2028. [ 2 , 3 ]
Why it matters
The plan shifts Porsche toward fewer model variants, higher-margin segments and combustion and plug-in hybrid models alongside electric ones, Huxiu and Jiemian reported. Huxiu noted that the targets rest on a very conservative forecast for the Chinese market and that reaching them still depends on improvements in the economic and regulatory environment.
Key facts
- Porsche agreed a "future package" with employee representatives to cut 9,000 jobs and to safeguard core workforce jobs until 2035. [ 2 , 3 ]
- Management positions are to be reduced by 40% in the mid term. [ 1 , 2 , 3 ]
- Headcount is to be cut by 25%, with a strategic target of 30%; Huxiu and Jiemian said this applies to direct and indirect functions. [ 1 , 2 , 3 ]
- Mid-term targets: group return on sales of 10% to 15%, automotive net cash flow margin of 9% to 12%, and group revenue of 41 billion to 45 billion euros. [ 1 , 2 ]
- Long-term targets: group return on sales of 15% and automotive net cash flow margin of 12%. [ 1 , 2 ]
- Porsche aims to lower its break-even point to below 200,000 vehicles a year. [ 1 , 2 , 3 ]
- Porsche plans about 20% fewer model derivatives and is developing a mid-engine hypercar platform for a new series positioned above the 911. [ 2 , 3 ]
- Porsche Engineering and Porsche Digital will merge into Porsche Technologies. [ 2 , 3 ]
Confirmed by several sources
- Porsche presented the "Sportwagenschmiede '35" strategy at a capital markets day at its Weissach R&D centre. [ 2 , 3 ]
- Porsche agreed with employee representatives to cut 9,000 jobs and safeguard core workforce jobs until 2035. [ 2 , 3 ]
- Management positions are to be reduced by 40% in the mid term. [ 1 , 2 , 3 ]
- Headcount is to be reduced by 25%, with a strategic target of 30%. [ 1 , 2 , 3 ]
- Mid-term targets are a 10% to 15% group return on sales and a 9% to 12% automotive net cash flow margin. [ 1 , 2 , 3 ]
- Porsche aims to break even at sales below 200,000 vehicles a year. [ 1 , 2 , 3 ]
- Porsche Engineering and Porsche Digital will merge into Porsche Technologies. [ 2 , 3 ]
Still unclear
- Which staff the 25% (target 30%) cut covers. 36Kr describes it as overall staff numbers, while Huxiu and Jiemian say it applies to direct and indirect functions; Jiemian's headline calls it layoffs of up to 30%.
- The year of the capital markets day. Huxiu gives the date as October 7, 2025, while Jiemian gives only October 7 and both reports were published in October 2026.
- How the 9,000 job cuts relate to the percentage reductions. The documents do not say how the figures relate to each other.
- Huxiu's statement that the targets rest on a very conservative China forecast. Only Huxiu makes this point, and Jiemian's text on the basis of the target is cut off.
What local media are saying
Timeline, local time
- October 7: 36Kr reports Porsche's financial targets and staff cuts from its capital markets day materials. [ 1 ]
- October 7: Huxiu reports Porsche will cut 9,000 jobs under the Sportwagenschmiede '35 strategy. [ 2 ]
- October 8: Jiemian publishes a detailed report on the strategy, including comments from Michael Leiters. [ 3 ]