The German automaker is planning to reduce costs and shift its focus to higher-margin segments.
‘Choose your own drive’ film from Lamborghini honors International Women’s DayDuring the 2025 fiscal year, the company generated sales of 36.27 billion euros, or $41.98 billion at current exchange, representing a 9.
5 percent year-over-year decline. In response, the manufacturer is doubling down on “Strategy 2035,” which aims to cut costs while increasing investments in product development. “Since I took office, our management team has systematically analysed the situation and begun a series of initial targeted measures,” said Michael Leiters, CEO of “These include the consistent application of our Value over Volume principle, especially in the difficult market environment of China; and the quality-oriented ramp-up of production of the all-electric Cayenne,” Mr. Leiters said. “We will streamline our management structure, reduce hierarchies and cut back on bureaucracy; we have also already begun to focus more strongly on our core business. “We are using the current challenges as an opportunity to act even more decisively; we will comprehensively reposition Porsche, make the company leaner, faster and the products even more desirable.”In 2024, the group’s profits totaled $6.5 billion; in 2025, profits fell to $477.9 million, cratering by 92.7 percent. The result is attributed to massively increased costs, driven by rescaling the company’s operations, global tariffs and electric battery production. Porsche’s vehicle deliveries also fell by 10.1 percent, with 279,449 cars reaching consumers. The group expects the all-electric Cayenne and 911 Turbo S to drive future sales. Image credit: Porsche This week, parent company Volkswagen announced that it will cut 50,000 jobs over the next four years; Porsche is affected by this reduction. The luxury brand will eliminate around 3,900 roles by 2030, representing around 10 percent of the automaker’s total workforce. “The global challenges and the company's realignment impacted earnings in 2025,” said Jochen Breckner, CFO of Porsche AG, in a statement. “In 2026, our recalibration measures will continue to have one-off effects on earnings in the high three-digit million euros range,” Mr. Breckner said. “In order to secure adequate margins by Porsche standards in the medium term and strengthen our resilience in the long term, we accept these burdens.” Porsche’s operational updates are driven by Mr. Leiters, who took over the luxury staple at the start of the year . As a part of the brand’s refreshed strategy, it will lean on new models and derivatives conceived by the new head of design, Tobias Sühlmann ( 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your own drive’ film from Lamborghini honors International Women’s Day
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