The German giant Porsche AG has announced a major “recalibration“ strategy that will put an end to several ambitious but loss-making divisions. In an attempt to focus on its core business — legendary sports cars — the company is closing the battery research unit Cellforce Group, the electric bike manufacturer Porsche eBike Performance and the software company Cetitec.
The figures behind this decision are startling and reveal the depth of the crisis. By the end of 2025, the group's revenue had shrunk to 36.27 billion euros, and operating profit had collapsed from an impressive 5.64 billion euros to just 413 million euros for the year. This drastic decline has forced management to take painful measures, including laying off more than 500 employees and parting with assets that are no longer considered strategic.
The main reasons for the financial “earthquake“ are complex:
Extraordinary costs: Nearly 3.9 billion euros have been sunk into restructuring the product strategy and logistical problems.
The China factor: Demand in the key Asian market has fallen by more than 20%, where local competition for electric vehicles is becoming increasingly aggressive.
Technological turn: Porsche is abandoning the idea of producing its own batteries, choosing a more flexible approach with external partners.
As part of the rescue plan, Porsche is taking another significant step — complete exit from the Bugatti Rimac joint venture. The Germans' shares will be bought out by an international consortium led by investment company HOF Capital. Although the restructuring will weigh on the balance sheet in the short term, the goal is clear: to transform Porsche into a “leaner and faster” company that can survive in the new reality of the automotive industry, where only the most efficient manage to stay on the road.