Porsche is planning a new wave of cost-cutting measures to address weakening demand in China and rising trade tensions with the United States, according to a letter from Chief Executive Oliver Blume seen by Reuters.
In the internal letter sent to company leadership, Blume indicated that employer and employee representatives will begin negotiations in the second half of 2025 to agree on a “second structural package” aimed at safeguarding the carmaker’s long-term performance.
Blume wrote that the company’s traditional business model, which has been in place for decades, “no longer works in its current form,” underscoring the growing urgency for strategic and structural adjustments.
The carmaker has yet to disclose specific details on the cost-cutting measures. However, the move follows Blume’s earlier announcement in March of additional savings efforts while presenting Porsche’s 2024 financial results.
Porsche has been grappling with a notable sales slump in China, its largest market, and is also dealing with a 27.5% import tariff on vehicles entering the United States—part of a broader trade dispute. The company currently imports all its vehicles from Europe and does not operate manufacturing facilities in the U.S.
Earlier this year, Porsche said it would reduce its workforce by 1,900 positions by 2029, primarily through attrition and the non-renewal of temporary contracts for 2,000 employees.
Once valued higher than parent company Volkswagen AG at the time of its 2022 stock market debut, Porsche has since seen investor confidence wane amid mounting global headwinds.
