Porsche Axes E-Bike, Battery R&D, Software Divisions: 500+ Jobs Cut, New ‘Strategy 2035’ Announced

Porsche AG has made fresh cuts as part of its ongoing strategic realignment, and will focus more on its core car business. The company is also streamlining its management structure, and has committed to cost-cutting across departments. CEO Dr Michael Leiters, who took the reins in January this year, has outlined a new Strategy 2035 plan which involves expanding the company’s car portfolio into higher-margin segments with new models and derivatives, particularly ones positioned above its current two-door sportscar models and the Cayenne.

The move to shutter three divisions completely comes shortly after Porsche AG announced its intention to divest its stakes in Bugatti Rimac and the Rimac Group.

Most notably, the company will terminate its Cellforce Group subsidiary, which “no longer has a sufficiently viable long-term perspective”. Cellforce had previously abandoned in-house EV battery development and had pivoted to being an R&D firm. Around 50 employees will be affected.

Porsche eBike Performance, a subsidiary set up to develop and market high‑performance e‑bike drive systems is also winding down completely. The company blames “fundamentally changed market conditions for e‑bike drive systems”. The subsidiary has around 350 employees.

Software arm Cetitec, which developed software and connectivity solutions for Porsche and other Volkswagen Group entities, will also be closed as Porsche does not see value in it anymore in the current market. At least 60 employees in Germany and another 30 in Croatia will be affected.

Additionally, Porsche’s Car-IT division will be downsized and merged into the company’s in-house R&D wing, effective June 19 this year. It was responsible for developing driver experience, connectivity and infotainment software, most notably the Porsche Digital Interaction design language introduced with the Cayenne Electric. Sajjad Khan, head of the division and company executive board member, will “contribute his expertise in the future as part of a software partnership model” going forward, according to the official announcement.

Fresh strategy follows a troubling year

According to a company statement, 2025 was financially challenging, with group sales revenue slipping 9.5 percent to €36.27 billion, from €40.08 billion in 2024. Group operating profit fell from €5.64 billion euros to just €413 million, a massive 92.7 percent drop. Operating return on sales was 1.1 percent, compared to 14.1 percent in 2024. The company delivered 279,449 cars to buyers in 2024, a 10.1 percent decline from the 310,718 units it delivered the previous year.

For 2026, the company says its financials are sound, with high net liquidity and a healthy enough balance sheet to stay resilient and flexible. It now forecasts a higher operating return on sales, of 5.5 to 7.5 percent. However, it says while this projection accounts for US tariffs and some “geopolitical uncertainties”, it does not factor in the ongoing war in the Middle-East.

"We are using the current challenges as an opportunity to act even more decisively. We will comprehensively reposition Porsche, make the company leaner, faster and the products even more desirable," Leiters said in a statement. He added, “We stand for uncompromisingly good sports cars that you want to drive yourself, that are fun, that convey performance and passion."