Porsche is pumping the brakes
According to a new report published by Bloomberg, German performance powerhouse Porsche is planning another round of sweeping cost cuts as it grapples with declining sales in key markets and the impact of U.S. tariffs. In a memo to Porsche employees seen by the financial publication, Porsche CEO Oliver Blume warned its employees that it will start negotiations on additional reductions during the second half of this year, noting that it is following through on a promise to find more cost savings after it let go of a significant number of employees.
“Our business model, which has served us well for many decades, no longer works in its current form,” Blume said.
Porsche
Porsche’s latest moves come as it grapples with a complicated sales picture in some of its biggest markets. During the first half of 2025, Porsche sales in China, its biggest market outside the U.S., saw an eye-watering 28% percent dip during the first half of this year. The company attributed this shift to fierce competition in the luxury and electric-vehicle segments led by homegrown automakers like BYD.
Despite this, Porsche Cars North America (PCNA) said earlier this month that it broke a sales record in its results through the first half of this year, as it saw retail deliveries of 38,696 vehicles through the first half of 2025. In a statement, Porsche Cars North America President and CEO Timo Resch attributed the 11.4% year-over-year increase to the “passion” of its customers.
“Despite a volatile market, our sales remained strong and interest in our cars continued to grow, in large part because of the outstanding customer experience delivered by our Porsche Centers,” Resch said. “Our commitment to choice is driving our success, with a mix of ICE, hybrid, and fully electric cars contributing to these results. While there may be uncertainty across many industries at the moment, it’s been great to see that the passion amongst customers continues to thrive.”
However, in its memo to Porsche employees, Porsche CEO Oliver Blume noted that President Trump’s tariff-centric trade agenda would have a significant impact on its margins, as nearly all of its U.S.-bound vehicles are imported from the European Union. According to a July 18 report by the Financial Times, Trump is said to be pushing for a 15-20% minimum tariff on all goods imported from the EU. “All of this is hitting us hard — harder than many other car manufacturers,” he said.
Porsche
Porsche is already planning double-digit headcount cuts
The new developments also come on the back of additional cost-cutting measures that it announced earlier this year. Back in February, Porsche announced that it was going to let go of 1,900 employees by 2030 in response to slumping EV demand and “challenging geopolitical and economic conditions.”
Specifically, it said that it plans to offer employees at Zuffenhausen and Weissach voluntary offers like early retirement and severance packages and will take a “restrictive approach” to new hires in an effort to reduce staffing numbers by 15% by 2029.
Final thoughts
According to a new report by the Financial Times, President Trump plans to keep EU car sector tariffs at 25%, even if the bloc and the Trump administration work out a trade deal. Currently, the administration is said to be willing to work out a minimum 10-15% tariff on all EU-imported goods.
Given that nearly all Porsche models sold in the United States are imported from factories in EU member states, the impact of tariffs alone could have serious implications for its bottom line if they do not raise prices or take any proactive actions.