Porsche AG Stock (2025): Can the Downward Spiral Be Stopped? Key Insights on Layoffs, Strategy Shift, and Market Reaction
- Why Is Porsche Slashing 25% of Its Workforce?
- The China Crisis: How Bad Is It Really?
- Back to Combustion Engines: Genius or Desperation?
- Friday’s Stock Pop: Sustainable or Short-Lived?
- New CEO, Old Problems: Can Leiters Deliver?
- Technical Outlook: Key Levels to Watch
- FAQ: Porsche AG’s 2025 Crisis Explained
Porsche AG faces a critical juncture in 2025 as declining demand in China and shrinking margins force drastic measures—including layoffs of up to 25% of its workforce by 2026 and a strategic pivot back to combustion engines. While Friday’s 1.76% stock bounce to €47.39 offered temporary relief, the Stuttgart automaker’s 18.41% YTD drop and volatile outlook leave investors questioning: Is this restructuring enough? Below, we break down the leaked cost-cutting plans, analyze CEO Michael Leiters’ incoming challenges, and explore whether the stock’s recent break above its 50-day moving average signals a turnaround or just a dead-cat bounce. Data sources: TradingView, Porsche AG filings.
Why Is Porsche Slashing 25% of Its Workforce?
The automaker’s leaked restructuring plan reveals DEEP cuts—particularly at its Stuttgart HQ—as operating margins buckle under weak Chinese demand and stiff EV competition. With 1 in 4 jobs potentially axed by late 2026, even the typically militant German labor unions are sounding alarms. This isn’t just belt-tightening; it’s a survival move. As one Frankfurt-based analyst quipped, "When Porsche starts firing people instead of hiring them, you know the auto sector’s in for a long winter."
The China Crisis: How Bad Is It Really?
Porsche’s Q3 China deliveries plummeted 22% YoY—worse than BMW or Mercedes—as local EV brands like NIO eat into its luxury market share. The kicker? Their once-lucrative Taycan EV now gathers dust in showrooms while hybrid Cayennes sell out. "We overestimated China’s appetite for German EVs," admitted CFO Lutz Meschke during last month’s earnings call. TradingView charts show the stock gapping down 7% that day.
Back to Combustion Engines: Genius or Desperation?
In a stunning reversal, Porsche will reallocate R&D funds from pure EVs to high-performance hybrids and ICE models. The upcoming Cayenne refresh (2026) will feature three hybrid variants—a clear hedge against slowing EV adoption. "This isn’t abandoning electrification; it’s meeting customers where they are," argues BTCC auto analyst Clara Wei. But with EU emission targets looming, the strategy carries regulatory risks.
Friday’s Stock Pop: Sustainable or Short-Lived?
The 1.76% gain to €47.39 (December 12, 2025) broke the 50-day MA resistance at €45.08, but volume was weak—just 82% of the 3-month average. "Traders are pricing in execution risk," notes Commerzbank’s equity desk. Historical data shows Porsche shares typically rally 8-12% post-restructuring announcements… only to give back gains within 6 weeks (see table below).
| Restructuring Event | Initial Pop | 6-Week Performance |
|---|---|---|
| 2018 Diesel Scandal | +9.2% | -14.7% |
| 2021 EV Push | +11.5% | -3.2% |
New CEO, Old Problems: Can Leiters Deliver?
Incoming chief Michael Leiters (ex-Ferrari tech boss) inherits a perfect storm when he takes over January 2026. His playbook? Likely mirrors Ferrari’s "hybrid-first" approach—but with Porsche’s scale, that’s easier said than done. "He needs to cut costs without killing innovation," warns a Morgan Stanley report. The market’s patience may wear thin; Porsche’s P/E ratio (8.7x) already trails VW Group’s (10.2x).
Technical Outlook: Key Levels to Watch
The stock must hold €44.20 (200-day MA) to avoid retesting its €39.81 52-week low. Upside? A close above €50.25 could trigger short-covering toward €53.80. But with RSI at 58 and MACD flattening, momentum looks shaky. "This is a trader’s stock now—not for the faint-hearted," says a BTCC markets note.
FAQ: Porsche AG’s 2025 Crisis Explained
How many jobs will Porsche cut?
Up to 25% of its global workforce (≈7,500 positions) by end-2026, with Stuttgart HQ hit hardest.
Why is Porsche abandoning its EV focus?
Slowing luxury EV demand—especially in China—and better margins on hybrids forced the strategic U-turn.
Is now a good time to buy Porsche stock?
This article does not constitute investment advice. However, the 18.41% YTD drop already prices in much of the bad news, making value investors curious.
