Porsche Confirms Guidance as Turnaround Efforts Start to Pay Off

By Dominic Chopping

Porsche AG backed its full-year guidance as the company's strategic reset begins to yield positive results.

The German luxury sports-car maker earlier this week announced plans to cut 5,000 jobs on top of the 3,900 it had already announced as it works through an efficiency drive and repositions to boost its competitiveness.

While Chief Executive Michael Leiters has outlined his broader plans, such as investing in new gas-powered and hybrid models, targeting profitability over volume, and reducing the number of model variants, he will present the full strategy at an investor event in October.

The company had previously cautioned that earnings this year would be hit by several hundred million euros of costs related to the realignment and it said Wednesday that it expects to book a three-digit-million-euro amount in the second half of 2026.

Realignment measures led to a net burden of around 100 million euros in the first half of the year. Charges of around 400 million euros were largely offset by settlements with suppliers, which saw the release of provisions of around 300 million euros set aside in the previous year.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

July 29, 2026 02:17 ET (06:17 GMT)