Porsche will sharply reduce production volumes and lay off workers

Instead of increasing sales, the company will focus on margins. Jobs and, probably, top managers will be sacrificed. New CEO Michael Leiters, who came from McLaren, is decisively curtailing the ambitious program launched under Oliver Blume. He planned to sell up to 400 thousand cars a year. Now the target figure will be reduced by exactly half.

According to the German publication Handelsblatt, Leiters wants to reorganize the company so that it remains profitable, producing about 200 thousand cars annually. By the end of the decade, operating margins should be 10-15%. Let us remember that at the end of last year it collapsed to just over 1%.

These measures are forced: in 2025, Porsche sold approximately 280 thousand cars – 30 thousand less than a year earlier. The decline continues: in the first quarter of 2026, sales fell by another 15%. China and the United States, two key markets, are stalling, and demand for expensive electric vehicles is far from forecast.

Now Michael Leiters is in tough negotiations with the works council regarding staff reductions. The development center in Weissach, where about 5,200 people work, is expected to be hit the hardest by this measure. According to insiders, every fourth job in this division is at risk.

In addition, Porsche is preparing to abolish its Car-IT division, and possibly reduce the number of board members from seven to six. The concern also intends to solve the problem of overproduction by combining the production and purchasing departments.

Earlier it became known about the revival of the Itala brand.