Porsche is in crisis, with up to 8,000 jobs at risk due to a failed electric vehicle (EV) strategy and declining sales, particularly in China. Despite strong overall performance in recent years, the company has seen a sharp drop in its Chinese market, with sales falling nearly 30% in the first nine months of 2024.
This has led to the need for drastic changes, including cuts to both its workforce and operations.
The company’s ambitious goal of making 80% of its cars electric by 2030 has hit major roadblocks. The Taycan, Porsche’s electric flagship, has become a slow seller, and delays in the launch of the E-Macan, caused by software issues, have worsened the situation. Additionally, the electrification of the 718-model series has faced complications, particularly with battery complexity. As a result, Porsche has scaled back its electrification plans, opting to extend the use of combustion-engine platforms where possible.
The company is also grappling with rapid depreciation of its EVs. Unlike the Porsche 911, which retains value, the Taycan loses tens of thousands of euros as soon as it leaves the lot, undermining the brand’s luxury image. In response, Porsche is reconsidering its electrification timeline, with the electric Cayenne now delayed, and even the Panamera and 911 potentially retaining combustion engines past 2030.
Porsche’s struggles are part of a broader challenge for its parent company, Volkswagen, which is also facing falling sales and significant layoffs, including the closure of manufacturing plants.
