Porsche’s Electric Detour and Tariff Trouble Lead to 6,000 More Job Cuts

Porsche is bracing for another wave of layoffs. Fresh off the 3,900 job cuts announced under former CEO Oliver Blume, the sports car maker is now preparing to eliminate up to 6,000 more positions by 2035. The supervisory board has signed off on a broader restructuring package, and plans could be presented to workers as early as next week.

The cuts come as new boss Michael Leiters, who took over after stints at McLaren and Volkswagen, tries to reverse a stunning 93 percent drop in operating profit last year.

The profit collapse stems from a perfect storm of problems. International tariffs ate into margins, sales in China slowed, and Porsche’s aggressive push into electric vehicles backfired. The company poured significant money into the electric 718 Boxster/Cayman and K1 SUV projects, only to reverse course.

Porsche has now walked back its commitment to an all-electric next-gen Boxster and Cayman, and the flagship K1 mega SUV will switch from VW’s electric platform to one that supports V6 and V8 engines along with hybrids.

Leiters is betting on high-margin models like the 911 to steady the ship. He also plans to simplify Porsche’s lineup and will not chase higher sales volumes. The brand, long one of VW Group’s most profitable, is now in survival mode. The question is whether trimming headcount and leaning on gas-powered icons can restore the luster, and the profits, that made Porsche a legend.