Porsche Slashes 25% of Workforce as Profit Margins Collapse to 1.1%

Porsche is eliminating 25% of its total workforce as it completely restructures its global manufacturing and sales footprint. The automaker's profit margin crashed to a dismal 1.1% last year, representing a massive collapse from the 18% margin reported just two years earlier. Leadership attributed the crisis to weakening Chinese demand, mounting tariffs, and a highly costly reversal of its electric vehicle strategy. CEO Michael Leiters is pivoting the brand to a strict "value over volume" model, narrowing the company's focus exclusively to higher-priced sports cars like the 911. China previously accounted for more than a third of Porsche's sales volume, but that figure is now projected to shrink to just 10% of global deliveries by 2030. "Without those profits, it’s causing huge headaches in Wolfsburg." — Matthias Schmidt