Porsche adjusts electrification strategy with job cuts and lower sales targets

Porsche, with its tradition of sports and luxury performance cars, is being reshaped in the midst of the challenges of a global consumer marketplace and realignment of strategies. The automaker was confronted with an authentic consumer paradigm shift, heightened competition within the primary markets such as China, and a distinct set of challenges related to the rollout of its electrification so seriously that it has led to a maturity of its targeted goals on production and business with respect to the creation of new realities.

The company had set an ambitious goal of transitioning to 80 per cent battery-electric vehicle (BEV) sales globally by 2030. This strategy, however, has encountered delays. As a result, the development timelines for several upcoming models—such as the electric replacements for the 718 Boxster and Cayman, as well as a three-row electric SUV—have been pushed back.

As per analysts, the company's previous emphasis on a BEV-dominant scenario, with limited integration of plug-in hybrids or multi-energy platforms, constrained its resilience. Brands that embraced more flexible architectures, enabling either electric or internal combustion propulsion, were best placed to counter-varying EV demand.

Features and market ynamics

Sales performance has also been affected in major markets. In China, Porsche's first-quarter sales fell by 42 per cent from the same period a year ago. The Chinese electric vehicle market has grown very fast, with local manufacturers launching high-performance EVs at affordable prices. Models such as the Xiaomi SU7 Ultra and Yangwang U9 are providing sophisticated features like four-figure horsepower outputs and active suspension systems, putting pressure on traditional global brands.

In February 2025, Porsche disclosed the elimination of 1,900 positions in its research and production centers in Germany. The company attributed the move to a delayed ramp-up in its electromobility efforts. German publication Automobilwoche reported that the company has lowered its 2025 sales revenue target by approximately €2 billion (around $2.2 billion), and that up to 8,000 additional jobs could be affected depending on future developments.

Specifications and internal developments

As Porsche develops its product plan more precisely, the technical specifications of its next-generation EVs will most probably respond to competitive standards being established within global markets. As active chassis systems and high-output electric drive units become standard fare, particularly in China, Porsche's next-generation products must meet changing customer expectations and technical benchmarks.

In response to current challenges, the company has also implemented changes in leadership. Michael Steiner, previously a senior development executive at Volkswagen Group, has been appointed deputy chairman of Porsche’s executive board. Earlier in 2025, the automaker also announced changes to its finance and sales leadership.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.