---
title: "Porsche Faces Challenges: Profit Decline, Workforce Cuts, and Strategic Shifts"
description: "Porsche AG is facing significant challenges, including a 22.6% drop in operating profit to €5.64 billion for 2024, attributed to declining demand in China and supply chain issues. Despite record sales"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/231507826.md"
published_at: "2025-03-12T09:27:48.000Z"
---

# Porsche Faces Challenges: Profit Decline, Workforce Cuts, and Strategic Shifts

> Porsche AG is facing significant challenges, including a 22.6% drop in operating profit to €5.64 billion for 2024, attributed to declining demand in China and supply chain issues. Despite record sales in four regions, total deliveries fell by 3%. The company plans to cut 1,900 jobs by 2029 and eliminate another 2,000 positions through contract expirations. Porsche is investing €800 million to revamp its model lineup and aims for a long-term operating return on sales of 20%, though it expects a dip to 10-12% by 2025. The dividend remains at €2.1 billion, reflecting commitment to shareholders amid market uncertainties.

Porsche AG (GER:**PAH3**) is facing a bumpy road as it navigates a challenging market landscape, particularly due to waning demand in China, which has significantly impacted its profitability for the 2024 financial year. The luxury automaker revealed a steep drop of 22.6% in its operating profit, which fell to €5.64 billion from the prior year's figure of €7.28 billion.

This revenue downturn isn't just a minor blip; it reflects a slight decline to €40.08 billion from €40.53 billion in the previous year. Moreover, Porsche reported a decrease in its operating return on sales, slipping from an admirable 18% to a more modest 14.1%. This decline has been attributed to a myriad of factors, including a sluggish Chinese market, setbacks in the global electrification of vehicles, and ongoing supply chain struggles.

Despite these setbacks, Porsche still achieved record sales figures across four out of five global regions, delivering 310,718 vehicles in total. Yet, this was still a 3% decrease from the 2023 sales of 320,221. Leading the charge was the Cayenne, with a robust 102,889 units sold, along with strong performances from the Macan and the iconic 911. The automaker is also seeing a shift towards electrification, with fully electric and plug-in hybrid models making up 27% of total deliveries. This figure is expected to grow to between 33% and 35% by 2025.

In response to this challenging economic environment, Porsche has initiated a strategic move to trim its workforce as part of a broader cost-saving initiative. The company plans to reduce approximately 1,900 jobs by 2029 primarily through natural attrition, demographic changes, and voluntary retirement options. Additionally, another 2,000 positions will be eliminated by allowing fixed-term contracts to lapse.

Porsche is also not sitting idle; it’s revitalizing its model lineup, recently upgrading five major lines: the Cayenne, Panamera, Taycan, 911, and the forthcoming all-electric Macan. This endeavor is being supported by a hefty investment of €800 million aimed at expanding their product range and keeping a delicate balance of combustion, hybrid, and electric powertrains.

The brand's ambitious 'Road to 20 initiative' aims to bolster cost efficiency in response to the persistent market difficulties. Although Porsche is still targeting an operating return on sales of 20% in the long term, it anticipates that this will dip to a more realistic range of 10% to 12% in 2025, largely due to rising costs associated with restructuring and persistent supply chain challenges.

Looking ahead, Porsche is projecting revenue between €39 billion and €40 billion for 2025. However, these estimates come with an air of caution, as the automaker acknowledges the potential impact of increasing economic uncertainty, intensified competition in China, and geopolitical tensions, especially in light of possible shifts in U.S. policy.

The company has also decided to maintain its dividend at last year's level, proposing a payout of €2.1 billion—equivalent to €2.30 per ordinary share and €2.31 per preference share. This suggests that despite the hurdles posed by market dynamics, Porsche remains committed to rewarding its shareholders as it adjusts its strategies to tackle upcoming challenges.

### Related Stocks

- [POAHY.US - Porsche](https://longbridge.com/en/quote/POAHY.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| 豪车神话破灭，保时捷销量创 16 年来最大跌幅 | 保时捷 2025 年全球交付量下降 10%，遭遇 16 年来最大年度销量下滑，股价随之创下 IPO 后最大单周跌幅。这表明其高增长神话终结，公司已进入艰难的重组与转型期，反映出欧洲豪华车行业面临的普遍困境。 | [Link](https://longbridge.com/en/news/272893707.md) |
| 保时捷 Taycan 和起亚 EV9 荣获 2026 年 AJAC 奖项 | 加拿大汽车记者协会（AJAC）将保时捷 Taycan 评选为 2026 年加拿大年度电动车，并将起亚 EV9 评选为 2026 年加拿大年度电动多功能车。获奖者在多伦多的加拿大国际汽车展上公布，此次评选经过了对近 400 辆汽车的严格评估。 | [Link](https://longbridge.com/en/news/276143184.md) |
| 电动化步伐放缓，Stellantis 战略 “大调头”：在欧洲重新推出至少 7 款柴油车型 | 对电动车销售放缓及市场现实压力，全球第四大汽车制造商 Stellantis 逆行业趋势而动，计划在欧洲市场重新推出至少 7 款柴油车型。这一战略转向旨在以成熟柴油技术为电动化过渡期提供缓冲，应对消费者需求疲软及对手竞争。此举折射出传统车企在 | [Link](https://longbridge.com/en/news/275984600.md) |
| 深圳一公司年会送 5 套房，还有保时捷、宝马、36 克金钞，员工：拿到房的都不是高管！ | 影石 Insta360 于 2 月 11 日年会上送出 5 套大湾区商品房、保时捷、宝马等豪车及 36 克金钞，获奖者均为 90 后员工，且无高管。年会奖品总数超 3600 份，中奖率高达 80%。创始人刘靖康表示，2025 年将是公司营收 | [Link](https://longbridge.com/en/news/275761523.md) |
| 保时捷可能会放弃其电动跑车，但这个奢侈品牌不会 | 保时捷首席执行官迈克尔·莱特斯表示，由于开发成本高，保时捷正在考虑取消其计划中的 718 Boxster 和 Cayman 电动车。同时，奥迪首席执行官确认，电动 TT 继任者仍在按计划推进，尽管有担忧认为它可能会受到保时捷决定的影响，因为 | [Link](https://longbridge.com/en/news/276269340.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.