Porsche to Close Three Subsidiaries, Cut Over 500 Jobs

Stuttgart-based luxury car manufacturer Porsche is closing three of its plants and cutting over 500 jobs. The company aims to refocus on its core business as part of its "strategic realignment." - AFP

Stuttgart-based luxury automaker Porsche has announced that it will shut down three of its subsidiaries as part of a strategic realignment, impacting more than 500 employees. The company confirmed the decision in a statement released on Friday, saying it would discontinue operations at Cellforce, Porsche eBike Performance, and Cetitec.

‍

CEO Michael Leiters said, "Porsche must refocus on its core business". He described the move as an essential step for a successful strategic realignment and said it requires the automaker to make “painful cuts.”

‍

Multiple business units and locations affected

The Cellforce Group, a battery cell subsidiary based in Kirchentellinsfurt, will be closed as part of Porsche’s shift toward a “technology-open drive strategy,” with around 50 employees affected

Porsche eBike Performance, which develops electric bike drive systems and operates in Ottobrunn and Zagreb, will cease its development activities, impacting approximately 350 employees

The software company Cetitec, with operations in Pforzheim and Croatia, will also be shut down, affecting about 90 employees

‍

Workforce strategy reflects ongoing cost adjustments

Porsche employs around 42,000 people worldwide. Earlier in 2025, the company had already announced plans to cut 1,900 jobs. At the time, it set a goal of reducing its workforce by about 15 percent by 2029. The company also recently announced that it would exit its joint venture with Croatian manufacturer Rimac for the Bugatti luxury brand.

‍

Market conditions continue to weigh on performance

Porsche has faced growing challenges in recent years. High investments in the development of electric vehicles have often not delivered the expected results. In addition, the company has been particularly affected by tariffs imposed by U.S. President Donald Trump, while its business in China has also weakened.

‍