Porsche’s shares fell 4.9% in Frankfurt after the company issued its second profit warning in two months, citing declining sales and rising costs.
The German automaker reported a 1% drop in revenue to €40.1 billion in 2024, with operating profit falling from €7.3 billion to €5.6 billion.
In an effort to streamline operations, Porsche announced nearly 4,000 job cuts, including 2,000 immediate layoffs as fixed-term contracts expire. The company is also investing €800 million in new hybrid and combustion engine models, which is expected to further impact profits.
Industry challenges, including weak EV demand, Chinese competition, and supply chain disruptions, have weighed on Porsche’s margins. While the Volkswagen subsidiary aims for a long-term return on sales above 20%, it currently expects 15%-17% in the medium term.
