Porsche to slash further jobs as profit slumps by 91%

German sportscar maker Porsche says it plans to cut further jobs after posting a 91% drop in 2025 profits on Wednesday.

Porsche chief executive Michael Leiters said a process to streamline the firm had already been "put in place" before he took the job earlier this year.

This process would now be "tightened even further" and include "further job cuts," he said during the presentation of Porsche's 2025 figures in Stuttgart.

Leiters did not give a specific number of positions to be slashed, citing planned talks with all parties involved.

On Wednesday, Leiters also announced plans to streamline the management structure in an effort to alleviate the carmaker's woes.

Under a previous agreement between the company and employee representatives, some 1,900 jobs are to be cut in the Stuttgart region, where the company is based, by 2029.

Porsche reported on Wednesday that its net profit slumped in 2025 as billions of euros in costs linked to a shift back towards combustion-engine models weighed on earnings.

Net profit fell 91.4% to €310 million ($360.7 million), the DAX-listed sports carmaker said, compared with nearly €3.6 billion a year earlier. Revenue dropped by almost a 10th to about €36.3 billion.

The company faced several headwinds last year: Sales in China slowed, US tariffs added significant costs and demand for Porsche's electric models came in well below expectations.

Former chief executive Oliver Blume revised the company's strategy before stepping down, expanding the range of combustion-engine vehicles to support sales.

The shift has proved costly. Porsche booked around €2.4 billion in expenses linked to the strategy change. The wind-down of a battery subsidiary added about €700 million in charges, while US tariffs had a similar financial impact.

Total special charges therefore amounted to roughly €3.9 billion.

Operating profit fell 92.7% to €413 million. In the core automotive business, excluding financial services, operating profit dropped to €90 million from around €5.3 billion a year earlier, according to figures from parent company Volkswagen.

Porsche expects business to improve in the current year but warned market conditions would remain challenging. New chief executive Leiters said geopolitical uncertainty persists and potential effects of the latest developments in the Middle East had not been factored into the outlook.

Leiters took over from Blume at the start of the year, after Blume shifted his focus to leading Volkswagen.