Key facts
- Porsche's restructuring efforts are enabling the company to confirm its 2026 guidance.
- CEO Michael Leiters acknowledged that substantial work is still required.
- A new package of job cuts will affect approximately 9,000 employees, or 20% of the workforce.
- These job cuts are expected to cost between €300 million and €400 million in the second half of the year and a similar amount next year.
- Porsche reported a 34% increase in group operating profit to €1.35 billion for the first half.
- The operating return on sales for the first half was 7.8%, exceeding the full-year target range.
Porsche's restructuring measures are beginning to yield positive results, allowing the luxury carmaker to confirm its 2026 guidance despite facing multiple challenges. CEO Michael Leiters, who took the helm at the start of the year, stated that while significant progress has been made on strategy, considerable work remains.
The company is implementing a new package of job cuts, which will reduce its workforce by approximately 9,000 employees, representing 20% of the total staff. This restructuring initiative is expected to incur costs between €300 million and €400 million in the second half of the year, with a similar impact anticipated for the following year. Finance chief Jochen Breckner expressed confidence that these expenditures will prove beneficial in the long term.
Both Porsche and its parent company, Volkswagen, are undergoing comprehensive overhauls. They are contending with billions in U.S. tariff charges, sluggish sales in China, and cost pressures within Germany. Breckner noted that the financial figures for the first half of the year align with expectations, attributing this to rigorous cost management and a strategic shift towards higher-margin, premium vehicles.
In the first half of the year, Porsche's group operating profit saw a 34% increase, reaching €1.35 billion. Although revenue experienced a 5% decline, the company achieved an operating return on sales of 7.8% during the six-month period, surpassing its full-year target range of 5.5% to 7.5%.