Porsche Announces Big Savings And Focuses On Expensive Models

Porsche plans to significantly cut costs in the coming years and focus on its most expensive vehicles to become more profitable again, according to a strategic reorientation plan unveiled today.

“With this strategy, we are creating the conditions to make Porsche significantly more efficient, productive and profitable in three phases,” said CEO Michael Leiters, who has been at the head of the company since January.

Porsche intends to reduce the development costs of future model series by up to 20 percent, Wirtschaftswoche reports.

Labor costs in production should be reduced by up to 30 percent in the medium term, and sales and distribution costs by 20 percent. For individual material costs, the goal is a reduction of about 10 percent, and the number of model variants will also be reduced, according to Tanjug.

The key pillars of the strategy are focusing on the core business and a more efficient organization, so the number of managerial positions should be reduced by 40 percent in the medium term. The total number of employees, both in production and in administration and supporting services, will be reduced by 25 percent in the medium term, with a strategic goal of 30 percent.

The share of particularly expensive cars should increase from about one-third to almost half of total sales. The goal is for the average price of the 10,000 most expensive Porsche vehicles to rise from 270,000 to 330,000 euros by 2030.

The Stuttgart-based company has been hit in recent years by falling sales, especially in China, weaker demand for electric models and US tariffs. Net profit in 2025 fell by 91.4 percent compared to the previous year, to 310 million euros.

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