Porsche has outlined plans to cut 9,000 jobs, increase average selling prices for its top models and expand into higher-margin segments under a new strategy running to 2035.
The manufacturer wants to lower its break-even point to fewer than 200,000 vehicles – to be based on very conservative forecast for China – and supported by a simpler model range, lower costs and greater revenue from personalisation.
Presented at its Capital Markets Day in Weissach, the strategy targets a medium-term operating return on sales of 10% to 15% and group revenue of between €41bn to €45bn.
Michael Leiters, chairman of Porsche’s executive board, said: “Our strategy will lay the groundwork to make Porsche significantly more efficient, productive and profitable in three phases. At the moment, the main focus is on reducing costs and making the company more financially robust.”
Higher price, fewer variants
Porsche said it is aiming to increase the average selling price of its top-of-the-range models by about 20% in the medium term, supported by product improvements and expanded personalisation options.
It also intends to increase revenue from its Sonderwunsch bespoke vehicle business sixfold and raise option revenue per vehicle.
The manufacturer plans around 20% fewer model variants, with the aim of increasing sales per variant by 30%.
New products include the all-electric 718 Boxster and Cayman, which are expected to support sales in their first full production year in 2028.
A new SUV with combustion engine and plug-in hybrid powertrains will also be presented in 2028, sold alongside the electric Macan, planned to make a significant contribution to profitability from 2029.
The company also announced development of a mid-engined supercar platform for a model line above the 911 and said it is also exploring an SUV positioned above the Cayenne.
Porsche will retain combustion engine, plug-in hybrid and battery-electric powertrains, while increasing collaboration with Audi on shared vehicle platforms.
Headcount targeted for cuts
Porsche said an agreement with employee representatives includes 9,000 job reductions alongside a commitment to secure core workforce jobs until 2035.
Management positions will be reduced by 40% in the medium term allied to a reduction target of 25% across direct and indirect functions with a longer-term strategic target of 30%.
The restructuring includes combining Porsche Engineering and Porsche Digital into Porsche Technologies.
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