Letter to the employees: Porsche boss Blume announces another savings program

Porsche CEO Oliver Blume agrees with the employees of the sports car manufacturer on another hard savings round. “The situation remains serious and the industry develops very dynamically,” he writes in a letter to the workforce, which is available to the German Press Agency in Stuttgart in excerpts. Porsche must therefore react flexibly and quickly to the changes. “In the second half of 2025, employer and employee representatives negotiate from now on a second structure package to secure the company’s performance in the long term.”

It was initially unclear whether further job cuts are planned. Blume did not comment on the content of the planned discussions with the works council. At the beginning of the year, the Swabians announced that they wanted to reduce 1,900 jobs in the Stuttgart region by 2029. For the employees of Porsche AG, employment securing until 2030. Operating terminations have been excluded until then – the group must rely on voluntariness.

Porsche speaks of “crisis of the framework”

Blume, who is also the Volkswagen boss, said: “During the negotiations on a second package of measures, the board and works council will develop solutions together.” An important basis for this is that this happens respectfully, confidentially and behind closed doors.

The business model that the company has worn over many decades no longer works in this form today, Blume continues. “Our framework conditions have worsened massively in a short time.” In addition, electromobility develops significantly slower in many markets than the car manufacturer and many experts expected it to be years ago. “It all hits us hard. Harder than many other automobile manufacturers. We are dealing with a” crisis of the framework “.”

Problems: China, USA and e-mobility

The Porsche boss sees three major reasons for the tense situation: in China, the market segment for expensive luxury products broke down in a short time, writes Blume to the workforce. In the United States, the tariffs, which have risen significantly since April, and the current price development of the dollar, pressed the Porsche business. With the sluggish change to e-mobility, considerable investments in the flexibility of the drives are also associated. Among other things, Porsche is expecting additional costs of up to 1.3 billion euros this year.

The various problems are also shown in the business figures: after the break-in 2024, the Porsche win continued to drop in the first quarter of 2025. The operational result was 0.76 billion euros – 40.6 percent less than a year earlier. The turnover was also below the previous year at 8.86 billion euros. Porsche therefore also stopped the forecast for 2025.

At the end of July, the management plans to present the figures for the entire first half of the year. Most recently, the Porsche lead had reported a sales minus – especially in China, sales collapsed.