Porsche's Profits Plummet 90% as Cost-Cutting Plan Takes Shape

Porsche has reported its weakest financial results in over 15 years, with net profits dropping by more than 90% in 2025. The company now plans to cut production and reduce costs to secure its future profitability. Production of the previous 718 models stopped last autumn. Porsche has not yet confirmed the future of its entry-level 718 series, though it intends to keep the relatively affordable lineup.

The company aims to finalise a second cost-cutting deal with employees before the summer plant shutdown in July. CEO Michael Leiters expects these negotiations to conclude quickly.

Porsche also wants to work more closely with Audi to improve efficiency. It plans to build fewer than the 280,000 vehicles it sold last year while maintaining its financial targets. Porsche must stay profitable despite lower sales volumes. Closer ties with Audi and reduced production costs are central to its strategy. The company is moving fast to secure agreements and stabilise its business.