Porsche announced plans to slash a quarter of its workforce and raise top-end model prices by 20% as profit margins collapsed from 18% to 1.1% last year. The German automaker, led by CEO Oliver Blume and new chief Michael Leiters, is shifting focus to "value over volume" amid weakening demand in China and Trump tariffs. By 2030, Porsche aims to reduce staff by up to 30%, cutting up to 9,000 jobs while raising average top-end prices to 330,000 euros ($370,000).
The company, once reliant on China for over a third of sales, now faces fierce competition from homegrown rivals like Xiaomi. Porsche's struggles ripple through its parent Volkswagen, which recently announced a €6 billion write-down and a 1% operating margin forecast. Analysts warn that shrinking could hurt Porsche's ability to compete with rapidly-innovating Chinese challengers, despite leveraging Volkswagen's economies of scale.
Source: New York Times Business · Summarized by HeadlinesBriefing