Porsche to Cut 3,900 Jobs as Challenges Mount in China, U.S.
Porsche says it will slash its workforce by 3,900 jobs and plans further cuts as part of a major restructuring aimed at turning around its profitability, as sales in China plummet and the threat of U.S. tariffs and other trade obstacles loom.
The trade tensions and increased competition in the Chinese market are expected to impact 2025 earnings, regardless of any tariffs Donald Trump's administration may impose on European imports, Porsche said on March 12 when presenting its 2024 results.
The threat of U.S. taxes
Porsche plans to pass on some of the costs associated with the new U.S. taxes to its consumers, although the company continues to hope for a more “reasonable” trade policy.
“When the situation becomes more concrete, we will evaluate the pricing options to be applied to consumers,” said Porsche CFO Jochen Breckner at the annual results presentation.
Lower profitability and revised targets
Faced with falling sales in China, Porsche has lowered its profitability forecasts. The brand is now aiming for an operating margin of 15-17 percent in the medium term, down from the previous target of up to 19 percent.