Porsche has decided to wind down three non-core divisions, resulting in the loss of over 500 jobs. The closures are part of a sweeping strategic reversal that is stripping Porsche of the electromobility ventures it spent years building. The way forward seems to be the backview mirror for the German sports car maker.
Germany’s most famous sports car maker is abandoning the innovative course it set for its future. Porsche confirms the closure of three subsidiaries: battery cell developer Cellforce Group, e-bike drive specialist Porsche eBike Performance, and data communication software firm Cetitec. Across Germany and Croatia, more than 500 positions are at risk.
The decision is part of the new CEO’s roadmap to restore the profitability levels investors grew accustomed to. Michael Leiters: “Porsche must refocus on its core business. This is the indispensable foundation for a successful strategic realignment. This forces us to make painful cuts, including our subsidiaries.”
Battery bet that didn’t pay off
Of the three closures, Cellforce carries the greatest symbolic weight. But last year, rumors surfaced that Porsche was considering winding down its battery production and innovation efforts. Originally, Cellforce was established as a joint venture between Porsche and Customcells to develop bespoke high-performance battery cells for Porsche’s electric sports cars.
Three years ago, Porsche took full control and boosted its ambitions, only to reverse course sharply in 2025 as the EV transition proved slower and more costly than anticipated. The rumors became reality. Production was halted in August last year, when around 200 of the then 290 employees were let go.
The remaining 50 staff will now also lose their jobs, as Cellforce has “no longer a sufficiently viable long-term perspective,” according to Porsche’s official statement.
E-bikes and software
Less symbolic for a car maker, but still surprising: Porsche eBike Performance, headquartered near Munich with a second site in Zagreb, Croatia, is also being wound down. The unit was set up to develop and market premium e-bike drive systems. That business includes the Greyp e-bike brand, founded by Rimac owner Mate Rimac, and absorbed into the Porsche division, together with drive system specialist Fazua.
With around 350 employees affected, this is the largest single job loss in the current round. Though the e-bike market has been booming, Porsche remains vague about the underlying reasons and cites “fundamentally changed market conditions”. To be clear: the e-bikes from Porsche remain on the market.
The third closure affects Cetitec, a software house that developed specialized data communication systems for both Porsche and the broader Volkswagen Group. Roughly 90 employees will see their roles eliminated.
In full retreat
The subsidiary closures do not stand alone. Just weeks earlier, Porsche announced the sale of its stake in the Bugatti Rimac joint venture and the Rimac Group to a consortium led by HOF Capital, an investment fund. Internally, the company is also reorganizing its management board, reducing the number of divisions from eight to seven by folding the Car-IT unit into the existing research and development organization.
The measures must help soothe the company’s financial backdrop. Porsche’s first-quarter operating profit dropped 22% year-on-year to €595 million, with its margin narrowing from 8.6 to 7.1%.
More to come?
The company is facing weakening demand in China, pressure from lower-priced domestic rivals, and the cost of unwinding its EV-first strategy. Porsche has already confirmed plans to develop at least two additional combustion-engine SUVs as part of its revised product roadmap.
The closure of the three subsidiaries is not a conclusive remedy, as it seems. Leiters, the former McLaren executive who now seems to be morphing into a crisis manager, has signaled that further cuts beyond those initially announced remain on the table.
