Porsche has just hit the wall ... hard. The legendary sports car brand watched its operating profit nosedive from more than €4 billion last year to just €40 million in the first nine months of 2025. That’s a 99 percent collapse, the deepest in decades, and the hole keeps getting bigger.
Q3 alone saw Porsche swing to a €967 million loss, far worse than investors and analysts expected. The numbers look even uglier when you factor in €2.7 billion in restructuring costs: scaling back the electric vehicle push, absorbing fallout from failed Taycan and slow-selling electric Macan, and dealing with brutal US import tariffs. The luxury market in China shrank by 25 percent, costing the brand nearly 10,000 sales in a matter of months.
Incoming CEO Michael Leiters now inherits a crisis of confidence and revenue. Internal sources reveal Porsche will cut about 3,900 jobs and introduce a “Future Package” to tighten costs and boost efficiency. Current CFO Jochen Breckner describes 2025 as “the trough,” banking on a rebound for 2026. Porsche says its net cash flow remains robust enough to weather the storm, but shareholders and longtime fans aren’t seeing much joy in the numbers.
After years of dominance, Porsche finds itself squeezed by rising competition, tech mishaps, and geopolitical headwinds. Leiters will have to steer not just an iconic badge but an entire business back onto the podium.