Porsche maintains fiscal outlook amid expenses, job cuts

BERLIN: Special expenses at German sports car manufacturer Porsche will total €1.3 billion ($1.47 billion) in the 2025 financial year, the firm said on Wednesday.

This is due to the planned realignment of battery activities and the extensive investments associated with the new product and corporate planning.

The company confirmed its plan to cut around 3,900 jobs by 2029 as part of its extensive cost and rescaling programme, amid the challenging situation in the automotive industry.

The company said its management and the works council will be negotiating a structural package in the second half of the year. This is intended to make Porsche even more efficient in the medium and long term.

As it holds its third Annual General Meeting on Wednesday, Porsche's leadership maintained its fiscal 2025 outlook, which was adjusted in April, and dividend proposal.

For 2025, the company continues to expect consolidated sales of €37-38 billion, a consolidated operating return on sales of 6.5-8.5%, an margin for automobiles of 16.5-18.5% and a BEV (battery electric vehicle) share of automobiles of 20-22%.

The sports car manufacturer expects a resilient and highly profitable future despite the major global challenges.

Porsche chief executive Oliver Blume said, "We are resolutely investing in the future. In challenging times we are continuing to develop Porsche with a precise focus.

This requires more resources in the short term, but it will make our company even more profitable in the long term."

As announced earlier, the executive board and supervisory board are proposing a dividend of €2.30 per ordinary share and €2.31 per preferred share for the 2024 financial year.

Regarding the comprehensive strategic realignment plan, which includes adapted product and corporate planning, Porsche said it intends to strategically reposition its battery activities and expand its product portfolio to include additional models with combustion engines and plug-in hybrid-drive systems.

About the projected special expenses, Blume said it is necessary to ensure that Porsche remains robust and highly profitable.

The company further announced additional management changes.

Michael Steiner, member of the executive board for research and development since 2016, will also take on the role of deputy chairman of the executive board of Porsche on July 1.

On August 19, Vera Schalwig will take over responsibility for human resources and social affairs, succeeding Andreas Haffner.

At the same time, Joachim Scharnagl will take over the procurement department from Barbara Frenkel.

Chairman of the supervisory board Wolfgang Porsche added: "The situation in the automotive industry remains challenging, and Porsche is not immune to this.

At the same time, our brand continues to have great appeal. We are all called upon to successfully master the challenges ahead."