Porsche Cuts 9,000 Jobs and Targets 200,000 Break-Even Units in Sportwagenschmiede ’35 Strategy
Porsche AG has announced a sweeping corporate overhaul dubbed the Sportwagenschmiede ’35 strategy, aiming to slash its financial break-even threshold below 200,000 units while cutting up to 9,000 jobs. Revealed during the Capital Markets Day at the Weissach research and development center near Stuttgart, the plan comes in response to severe financial strain that saw operating margins plummet to roughly 1% in 2025, down from a historical average exceeding 15%.
Financial Realities Driving the Restructuring Plan
The restructuring effort addresses a sharp decline in global sales and revenue. According to financial data reported by Il Sole 24 ORE, Porsche delivered over 320,000 vehicles at its 2023 peak. Company revenue contracted from 40.5 billion euros in 2023 to 36.2 billion in 2025. In the first half of 2026, sales fell by 16% to just over 122,000 vehicles, despite a surge in deliveries for the 911 model.
Michael Leiters, who took the helm in January, told analysts that the company must reduce costs to combat a difficult operating environment marked by tariffs, supply chain disruptions, a strong euro, intense Chinese market competition, and tightening emissions regulations. To stabilize finances, Porsche has exited its investments in Rimac and Bugatti Rimac, agreed to sell consulting firm MHP, and decided to wind down Cellforce Group, Porsche eBike Performance, and Cetitec, as reported by the Republic.
Future Package Trims 9,000 Positions to Cut Costs
The workforce reduction plan, termed the Future Package, is designed to trim personnel costs across the board without mandatory layoffs. As detailed by Motor1, the strategy targets up to 9,000 positions through early retirement, natural attrition, and the non-renewal of fixed-term contracts. Management ranks are slated for a 40% reduction, while direct and indirect administrative roles will fall by 25% in the medium term and 30% at maturity. Overall labor costs are expected to drop by 10%, driven by a 30% reduction in production expenses and a 20% cut in distribution and sales overhead. Employee compensation bonuses will shift toward individual performance incentives, complemented by a staff share-distribution program starting in 2028.
Product Roadmap Adjustments and the Return to Internal Combustion
Porsche is realigning its vehicle portfolio to prioritize high-margin segments and a higher average price point per vehicle, which management expects to rise by 20% across the gamma. While the brand remains committed to electrification—confirming that the next-generation 718 Boxster and Cayman will arrive as pure battery-electric vehicles in 2028—it is introducing a strategic pivot. As reported by Quattroruote and other outlets, Porsche will introduce a new Macan variant featuring internal combustion engines and plug-in hybrid powertrains alongside the existing electric Macan in 2028. The automaker also plans to develop a new central-engine supercar positioned above the 911 and a large SUV positioned above the Cayenne.
Financial Targets Toward 2035
- Operating Return on Sales: Targeted at 10% to 15% in the medium term (around 2030), rising to a steady 15% by 2035.
- Automotive Net Cash Flow Margin: Targeted between 9% and 12% by 2030 and 12% at full regime.
- Revenue Projections: Expected to recover within a bracket of 41 to 45 billion euros in the medium term.
- Manufacturing Footprint: German production sites have secured an extension of their job security guarantees through 2035 under the new labor agreement.
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