Iconic supercar brand ‘bracing for more cost cutting' weeks after halting all sales of EVs in the UK
The luxury carmaker is seeking ways to offset declining sales in China and the escalating cost of US tariffs.
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Porsche CEO, Oliver Blume, has initiated negotiations on another round of cost-cutting measures.
Blume had already announced additional savings in March while presenting the firm's 2024 results.
An excerpt of a letter sent to the company's leadership said: "In the second half of 2025, employer and employee representatives will negotiate a second structural package to secure the company's long-term performance."
Blume wrote: "Our business model, which has served us well for many decades, no longer works in its current form."
Details about what the possible savings measures might look like weren't included in the letter.
Porsche has been particularly struggling with low sales in China.
But the carmaker is also facing difficulties in the US where import duties of 27.5% on motors have been in place since April.
The company doesn't have production facilities in the US, importing its cars exclusively from Europe instead.
At the beginning of the year, Porsche had announced that it would cut 1,900 of around 40,000 jobs by 2029.
This came after 2,000 temporary employees did not have their contracts renewed.
Inside Dua Lipa's one-off 184mph Porsche 911 GT3 RS set to raise £100,000s for charity
It's a fall from grace from the motor company which, at its 2022 stock market debut, was valued higher than parent company Volkswagen AG.
Experts have linked the company's struggles to its overly aggressive and inflexible electrification strategy.
Porsche has had a goal of being 80 per cent electric worldwide by 2030
But the brand dramatically halted all sales of one of its electric vehicles in the UK in May.
The company mysteriously told its retailers to stop selling a specific batch of the electric sports car.
Several main Porsche dealers were asked to remove a selection of electric Taycan models from sale.
It followed a request from the Driver and Vehicle Standards Agency (DVSA) which manages motor recalls in the UK.
The problem related to a previous recall issued in November by the DVSA which said it could pose a fire risk.
that month too over the risk of the wheels falling off while driving.
It issued a notice on three of its most popular models including the iconic 911.
Owners were urged to "stop driving immediately".
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