Porsche Closes Three Subsidiaries, With The Loss of 500 Jobs as Turnaround Efforts Continue — Update

By Dominic Chopping

Porsche is doubling down on its strategic turnaround efforts by shedding further non-core assets, as its new chief executive looks to streamline the automaker and boost profit.

The German luxury sports-car maker said Friday it will close three subsidiary companies, with the loss of around 500 jobs.

Battery-tech developer Cellforce Group, e-bike electric drive systems developer Porsche eBike Performance and Cetitec, a company that produces specialized software for data communications, are all being shut down.

"Porsche must refocus on its core business," CEO Michael Leiters said. "This is the indispensable foundation for a successful strategic realignment."

The news follows the company's recent agreement to sell out its stakes in hypercar joint venture Bugatti Rimac and electric-vehicle maker Rimac Group, and comes after Porsche last year decided to backtrack on its EV strategy.

Earnings this year are expected to be hit by several hundred million euros of costs as realigns its strategy to counter a slow uptake of electric vehicles, weakness in China, and U.S. tariffs.

Deliveries of Porsche cars fell by 15% in the first three months of the year, while operating profit slumped 22% to 595 million euros ($697.5 million).

Porsche is investing in new gas-powered and hybrid models after delaying the rollout of new all-electric vehicles, with Leiters targeting cost cuts, a focus on profit over sales, and the production of more higher-margin and desirable cars.

It is due to present a full strategy update in the fall, which will include plans to lower costs and broaden its product range in the period to 2035. Former McLaren boss Leiters has already pledged to make the company leaner and faster while aligning its product portfolio more consistently with customer wishes.

As part of those plans, it announced Thursday a streamlining of its executive board as it integrates the activities of its standalone Car-IT division into its research & development unit.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

May 08, 2026 09:24 ET (13:24 GMT)