The wind is changing direction in Stuttgart.
Porsche isn’t just feeling a draft. It is preparing for a storm, and the union leaders have already given the green light. According to Automotive News, the supervisory board—half of whom are worker reps—has approved CEO Michael Leiters’ proposal to slash another 5,000 jobs in Germany.
This isn’t the first time the axe falls. The company had previously agreed to cut 3,900 positions. Now, with roughly 23,000 employees still on the rolls in Germany, the bloodletting continues.
Who loses their desk at Porsche?
It won’t just be factory hands.
The hit lands hardest in administrative functions and R&D. Specifically, the Weissach development center outside Stuttgart. That’s where the engineering magic usually happens, but now, the logic is cold. By simplifying product trims and model ranges, Porsche argues it needs fewer engineers.
Leiters has confirmed that management layers are also being trimmed. Senior managers. Middle management. The ranks are thinning out.
Why is Porsche cutting jobs in 2024?
Look at the sales numbers. They tell a brutal story.
In 2023, Porsche sold a record 320, profit margins were double digits. Then reality hit. China, a massive market for premium EVs, slowed down sharply.
“A sharp downturn in sales” explains the belt-tightening.
This year, Porsche expects to sell only about 250,000 vehicles. A drop of 70,000 from last year. Even in 2022, they sold 279,499. The trajectory is clear.
Financially, the brand will stay in the black. An operating profit margin of 5.5 to 7.5 percent is projected. For Volkswagen, the parent company, that might be acceptable. For Porsche? It is an insult.
The brand once boasted double-digit margins. Leiters wants those back. He is targeting a 15 percent margin in the medium term. How? By cutting costs and launching new products. Some of those products might be unveiled at a strategy briefing in early October.
The lineup hole and what comes next
Here is the problem with simplification. You create gaps.
The first-generation Macan ends production this month. The second generation is EV-only. But wait—Porsche just approved a successor to the petrol Macan in July. It launches in 2028. It is based heavily on the Audi Q5.
So, between now and 2028, there is a void.
To plug it, Porsche is shifting gears. Last September, they announced the new flagship three-row SUV (the Macan’s big brother, essentially) would support petrol and plug-in hybrids, not just EVs. They also promised high-performance petrol options for the long-delayed 718 EV range.
It feels like a correction course. Too fast into electric? Maybe.
But while they add hybrid options here, reports from Bild suggest they are ready to cut elsewhere. The Taycan? Potentially gone. The Cayenne Coupe? Also at risk. And those combustion versions of the next-gen 718? They might never see the light of day.
It is a confusing mix of adding petrol while killing EVs.
Or maybe it’s just survival.
When margins drop and China closes its wallet, you stop caring about the perfect portfolio. You start caring about the bottom line.
The wind is still cold.
Will the next model save the brand?
Or will there be another 5,000?
