Porsche CEO seeks July deal on second cost-cutting package

Anabelle Colaco
24 Jun 2026, 00:56 GMT+10

Porsche aims to finalize negotiations on a second cost-cutting package with employees before factory holidays begin in July, Chief Executive Michael Leiters said in an interview published on June 20
The German sports car maker is seeking to reduce costs as it faces pressure from tariffs, geopolitical uncertainty, and gaps in its model lineup, which contributed to further profit erosion in the first quarter of 2026
Porsche has previously said it plans to cut 1,900 jobs in the coming years, following the 2025 layoff of 2,000 temporary workers

STUTTGART, Germany: Porsche aims to finalize negotiations on a second cost-cutting package with employees before factory holidays begin in July, Chief Executive Michael Leiters said in an interview published on June 20.

The German sports car maker is seeking to reduce costs as it faces pressure from tariffs, geopolitical uncertainty, and gaps in its model lineup, which contributed to further profit erosion in the first quarter of 2026.

"We want to reach an agreement with the employees before the factory holidays in July. Porsche employees need clarity," Leiters told Frankfurter Allgemeine Sonntagszeitung.

Porsche has previously said it plans to cut 1,900 jobs in the coming years, following the 2025 layoff of 2,000 temporary workers.

The company is also preparing for lower production levels than the roughly 280,000 cars it sold last year, Leiters said.

"Porsche has to make money with fewer cars," Leiters told FAS.

The planned cost-cutting package would be the latest effort by Porsche to adjust its operations amid difficult conditions for European automakers, including weaker demand in key markets, rising costs and uncertainty around trade policy.

Porsche's profitability weakened further in the first three months of 2026 as the company dealt with tariffs, geopolitical turmoil, and gaps in its product lineup.

The company also plans to deepen cooperation with fellow Volkswagen Group brand Audi, Leiters said, though he did not provide further details.

Porsche will continue producing its entry-level 718 series, he added.