Porsche is restructuring its business around lower sales volumes and a greater focus on high-end vehicles as it seeks to rebuild profitability amid weakening global demand and rising costs.

The sports-car manufacturer plans to reduce its future break-even point to fewer than 200,000 vehicles annually, significantly below the 279,449 vehicles delivered last year.

Global deliveries have declined by almost 10% since Porsche’s 2022 stock-market listing, with weaker demand in China and US tariffs adding to pressure on the business.

Chief Executive Michael Leiters is placing greater emphasis on Porsche’s most profitable and desirable models, particularly the 911.

The company aims to increase the selling prices of its top 10,000 vehicles as part of an effort to strengthen the brand’s positioning in the global luxury market.

The strategy follows a sharp deterioration in profitability. Porsche’s operating margin fell to 1.1% last year, compared with margins in the high teens when the company went public.

Porsche is targeting a medium-term operating margin of 10–15%, with a long-term ambition of 15%. Achieving this will require significant cost reductions, including 9,000 job cuts by 2035, a 40% reduction in management positions and lower development and sales expenses.

The company also plans to increase platform-sharing with Volkswagen Group sister brand Audi.

Porsche’s strategy represents a shift away from volume growth towards greater exclusivity, cost discipline and higher profitability per vehicle.