Porsche chief expects swift deal on second cost-cutting package

Porsche chief executive Michael Leiters said he expected negotiations on a second cost-cutting package to conclude quickly, with an agreement in place before factory holidays begin in July. The push shows how much pressure is building at the German sports-car maker, even after years of luxury pricing and a reputation for premium margins.

The case for faster action is visible in Porsche’s first-quarter 2026 results. Operating profit fell to 595 million euros from 762 million euros a year earlier, sales revenue dropped 5.2% to 8.4 billion euros, and deliveries declined to 60,991 vehicles from 71,470. Porsche said its return on sales was 7.1%, still at the upper end of its forecast range of 5.5% to 7.5%, but the quarter also included a 200 million-euro hit from U.S. tariffs. Even with improved automotive net cashflow of 514 million euros, the numbers pointed to a business facing tougher conditions across markets.

The strain was sharper over the full year. Porsche’s operating profit fell to 413 million euros in 2025 from 5.637 billion euros in 2024, while the group operating return on sales dropped to 1.1% from 14.1%. Vehicle sales declined 15.0% to 265,663, and the 718 Boxster and Cayman line fell 31.2% to 17,315 units as model availability tightened while the series was phased out. That kind of slide is forcing management to defend core sports-car lines while trimming weaker parts of the portfolio.

Leiters, who became chief executive on January 1, has said Porsche will be “leaner” and “faster” as it adjusts to weaker demand and tougher market conditions. He has also pointed to closer cooperation with Audi and said Porsche will keep the entry-level 718 series in production, while the company considers expanding into higher-margin segments. That strategy suggests Porsche is trying to protect brand value and finance electrification and software investment at the same time.

The savings drive carries direct consequences for jobs and output. Porsche has already said it will cut 1,900 jobs in the coming years after laying off 2,000 temporary workers last year, and it plans lower production volumes than the sales levels it posted in 2025. A second cost-cutting package would reinforce the shift from expansion to discipline, with more emphasis on efficiency, partner synergies and a narrower production strategy.