Porsche plots cuts, profitability drive amid steep downturn

Porsche’s new CEO said the German sportscar maker would cut more jobs and focus on profits over sales in an effort to turn the company around.

Porsche had a dour 2025, reporting a staggering 93% decline in operating profit.

The downturn reflected the challenges facing Europe’s car sector, especially in China. The world’s largest car market “has delivered a lesson in humility” in recent years, a Bloomberg columnist wrote, as Porsche’s sales there gradually declined in the face of cheaper domestic competitors.

The Iran conflict presents yet another challenge for Porsche, the company said, because of rising energy prices, supply chain disruptions, and dampened Middle East demand.