Major cuts at Porsche: 500 jobs axed, e-bike division shut down

Porsche is strategically realigning its business and clamping down hard. The Stuttgart-based automaker is closing three subsidiaries, resulting in the loss of over 500 jobs. At the center of these cuts is the termination of its in-house e-bike business. Porsche eBike Performance GmbH is being completely wound down. The closure affects roughly 350 employees in Ottobrunn near Munich and Zagreb, Croatia.

The automaker had originally intended for this division to design and sell its own proprietary e-bike motors. However, fundamentally altered market conditions have now forced the company to retreat. Although bicycles bearing the Porsche logo will continue to be available, they will be built exclusively by Porsche's German partner, Rotwild, moving forward.

Beyond the e-bike division, two other companies are affected. The battery subsidiary Cellforce Group in Kirchentellinsfurt will be permanently closed, eliminating around 50 positions. Battery production there had already been largely halted last year. Software company Cetitec, which specializes in data communication, is also facing the axe. This closure affects around 60 jobs in Pforzheim and 30 in Croatia.

CEO Michael Leiters is streamlining the group for efficiency, refocusing strictly on manufacturing sports cars. Leiters described the cuts as an indispensable foundation for a successful realignment. With these measures, Porsche is reacting to a significant decline in its Q1 2026 financial results.

The balance sheet is heavily weighed down by a massive slump in demand in the crucial Chinese market, alongside new US tariffs. The restructuring extends all the way to the executive suite. Porsche is downsizing its executive board from eight divisions to seven. The Car IT department will be dissolved and integrated into general vehicle development starting in July.