Porsche's Second Cost Cut in a Year: Leiters Wants a Deal Before July
Porsche CEO Michael Leiters has told Frankfurter Allgemeine Sonntagszeitung he wants a second cost-cutting package agreed with employees before the German factory holidays in July. The Stuttgart sports car maker will also deepen cooperation with sister brand Audi, keep the entry-level 718 alive, and plan for production below last year's 280,000-unit run-rate.
What was announced
In an interview with Frankfurter Allgemeine Sonntagszeitung published on Saturday, Porsche CEO Michael Leiters said he expects a swift conclusion to negotiations on a second cost-cutting package. "We want to reach an agreement with the employees before the factory holidays in July. Porsche employees need clarity," Leiters told the paper. German auto plants typically shut for two to three weeks from late July.
Porsche is restructuring the balance sheet, not the product. The Cayenne, Macan and 911 that Indian buyers want are not on the chopping block.
Porsche has already announced 1,900 job cuts over the coming years, on top of 2,000 temporary workers let go in 2025. Leiters confirmed the company is now planning for lower production capacity than the roughly 280,000 cars it sold last year. "Porsche has to make money with fewer cars," he said, framing the strategy as a margin defence rather than a volume play. The brand is navigating tariff pressure in the United States and China, weaker-than-expected EV demand, and broader geopolitical headwinds.
Two product-relevant points emerged. First, the entry-level 718 series will continue, ending speculation that the two-seater would be axed after the current generation. Second, Porsche will move into closer cooperation with sister company Audi, which is itself running its own restructuring under CEO Gernot Doellner. Leiters did not detail which platforms, powertrains or software stacks would be shared, but the direction signals more VW Group integration for a brand that has historically guarded its engineering independence.
The Car Jury verdict
This is the second restructuring in roughly a year at a brand that, until recently, was the VW Group's profit engine. Rachit Hirani of MotorOctane puts the cause bluntly: "the extra investment Porsche has made in electric, they didn't get as many sales." The Taycan stalled, the electric Macan launch was bumpy, and tariffs in the US and China have done the rest. Leiters is right to move fast, but "make money with fewer cars" only works if Porsche protects what Indian buyers actually queue up for: the combustion Cayenne and Macan, and the 911. Closer Audi cooperation is sensible on platforms and software; it becomes a problem the day a 718 successor feels like a rebadged Audi. For now, our BUY calls on the Cayenne, Macan and Taycan stand. The restructuring is about the balance sheet, not the product.
