Porsche CEO Michael Leiters is pushing to finalize the second round of lengthy negotiations concerning a new austerity package at the struggling Stuttgart luxury car manufacturer. Speaking to the “Frankfurter Allgemeine Sonntagszeitung”, Leiters stated that they aim to reach an agreement with employees before the factory holidays in July, emphasizing that Porsche staff need clarity on the situation.
Discussions between Porsche management and the works council over job cuts and cost reductions began last autumn. The initial round of cuts had already announced the reduction of approximately 3,900 jobs in 2025.
Looking ahead, Leiters indicated that Porsche plans to operate with production capacities lower than the roughly 280,000 vehicles the company sold last year. He noted that the company must also anticipate earning less revenue from fewer cars. To counter these pressures, Leiters stressed the importance of strengthening collaboration with its corporate sister company, Audi, which is part of the Volkswagen group. “We want to deepen our cooperation with Audi; this is a huge opportunity for both sides,” he said.
Despite the economic headwinds, the automaker’s manager clarified that the relatively affordable entry-level Porsche 718 line will continue. “We also want to continue introducing new customers to the brand,” Leiters told the FAS. Although the production of the final generation of the 718, comprising the Boxster and Cayman models, had ended last autumn, Porsche had not yet determined the future of the line.
Leiters took over as CEO in January and previously led the British sports car brand McLaren. Porsche has been grappling with declining sales, resulting in 2025 posting its weakest financial result in over fifteen years. The company’s net profit decreased by more than 90 percent.
