Deep red for Porsche. The company recorded a loss of almost one billion euros in the first quarter of the year, a negative figure that came shortly after the announcement of the closure of three branches. A cut that would result in the loss of around 500 jobs.
Porsche in crisis
Closures and cuts are part of a strategic reorganization plan, made necessary by the critical moment that the entire automotive sector is going through. Yesterday, Wednesday 13 May, the German holding company Porsche SE provided first quarter data, in which it recorded a net loss of 923 million euros, after a massive write-down of its stake in the Volkswagen Group. The Stuttgart company, however, recorded a slight decline in losses compared to the 1.08 billion euro red in the first quarter of 2025. The company, owned by the Porsche and Piech families, carried out a write-down of 1.3 billion euros on its stake in the Volkswagen group.
Both Europe’s largest car maker Volkswagen and carmaker Porsche are currently facing difficult market conditions: Porsche SE CEO Hans Dieter Potsch said the company achieved a profit on a consolidated basis net of write-downs and was able to further strengthen its financial structure: “At the same time, business models that have served our core investments well for a long time now need to be realigned.”
Three branches close
Only a few days earlier the company had announced the closure of three branches, with a consequent cut of 500 positions. The decision of the board of directors and the supervisory board of the car manufacturer falls within the scope of the strategic reorganization of the group. Among the subsidiaries that will be closed is Cellforce, specialized in high-performance batteries, because it no longer presents sufficiently promising growth prospects.
With the closure of Cellforce, 50 employees will lose their jobs. Another closure concerns eBike Performance, created to develop and market high-end propulsion systems for electric bicycles. The closure of the factories in Ottobrunn, near Munich, and Zagreb, Croatia, affects around 350 employees. Finally, the subsidiary Cetitec, which develops specialized software for data communication for Porsche and the entire Volkswagen group, will also close its doors, with the consequent loss of approximately 60 employees in Germany and 30 in Croatia.