Porsche in crisis: three subsidiaries to be closed

Healthy Shrinkage Porsche Closes Three Subsidiaries

2026-05-11 Source: dpa 2 min Reading Time

It is well known that the sports car manufacturer Porsche is in crisis. The company is now focusing on its core competencies, but this means the end of three subsidiaries ...

Porsche cannot rest, the losses are immense - and have been for some time. Now the management has decided to close down three subsidiaries ...(Image: Porsche) — Porsche cannot rest, the losses are immense - and have been for some time. Now the management has decided to close down three subsidiaries ...
(Image: Porsche)

Porsche, formerly spoiled by success and the profit pearl of the parent company Volkswagen, has become a company in crisis mode in the course of 2025. Group earnings amounted to 350 million US dollars, a good 91 percent less than in 2024, which was already a very weak year. There is currently no end to the misery in sight! Profit also fell by almost a quarter in the first quarter. Porsche is now closing the battery subsidiary Cellforce, e-Bike Performance GmbH and the software subsidiary Cetitec, the Supervisory Board decided today, according to reports from Stuttgart, Germany. This will affect around 500 employees in total. Just two weeks ago, Porsche announced its intention to sell its stake in the luxury sports car manufacturer Bugatti, among other things. According to CEO Michael Leiters, Porsche must refocus on its core business. This, it is emphasized, is the indispensable basis for a successful strategic realignment. This will also require painful cuts, such as the closure of the above-mentioned Porsche subsidiaries. However, it remains unclear when all of this is to be completed.

Many More Employees Will Leave Porsche By 2029

It was only last August that the VW subsidiary announced job cuts at Cellforce in Kirchentellinsfurt. According to earlier information from dpa, more than two thirds of the 280 employees were affected at the time. The battery subsidiary was supposed to focus on research and development in the future. The reason for the move was a change in strategy, which is known to be leading Porsche away from its ambitious e-car targets in order to build more cars with combustion engines again. As part of the strategic realignment with a drive strategy open to technologies, however, Cellforce no longer has sufficiently viable prospects. Around 50 employees are affected there alone. And Porsche e-Bike Performance was once founded to develop e-bike drive systems. The closure of the Ottobrunn and Zagreb sites will affect around 350 employees. And at the software company Cetitec from Pforzheim, around 60 employees in Germany and 30 in Croatia are affected by the planned closure. The management there will enter into talks with the works council, according to reports. By 2029, around 1,900 jobs at Porsche in the Stuttgart region are to be cut in a socially responsible manner. In addition, the contracts of around 2,000 temporary employees have expired. Negotiations on a second cost-cutting package have been underway for some time, but have not yet led to any results.

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