Porsche faces severe downturn, plans second wave of massive layoffs

Porsche is confronting its most challenging business period in recent years, with reports indicating a second wave of substantial layoffs is being planned. This new round of cuts could bring the total number of employees reduced to nearly 9,000, a drastic measure in response to declining sales and market pressures.

After achieving a record high of 320,221 global sales in 2023, Porsche's performance has faltered. Sales dropped to 279,449 vehicles in 2024, and the first half of 2026 saw a further 15% decrease in global demand. Market analysts anticipate this downward trend will continue throughout the year, prompting the company to reassess its operational strategy.

To improve its financial health amidst this downturn, Porsche's CEO Michael Leiters has reportedly presented a new operational strategy to the supervisory board. This plan includes not only further workforce reductions but also potential adjustments to salary structures. As a concession, the company is considering offering guaranteed employment until 2035 for remaining staff, aiming to prevent future layoffs due to operational reasons.

The significant sales slump is partly attributed to a product generation gap. The combustion engine Macan is set to cease production this month, with its successor not expected until 2028. Similarly, the 718 Boxster and Cayman were discontinued last year, and their electric versions are not slated for release until 2027, leaving a gap in crucial sales drivers for the brand.

These impending layoffs are expected to primarily affect the research and development division. Porsche aims to streamline product development by sharing platforms and R&D resources with Audi, thereby reducing costs and accelerating the efficiency of new car development. Despite these cost-saving measures, the company continues to advance its product pipeline, including plans for a three-row SUV positioned above the Cayenne and a potential successor to the 918 Spyder hypercar.