Porsche will cut 9,000 jobs by 2035 and lower its annual break-even target to fewer than 200,000 units as it shifts away from high-volume sales. The Stuttgart-based automaker outlined the restructuring plan on Wednesday to investors, aiming to restore profitability through a focus on premium models and strict cost control.

Profit margins collapsed to 1.1% last year, far below the double-digit targets set when the company went public four years ago. Global deliveries have already dropped almost 10% since the 2022 listing, driven by weak demand in China and tariffs in the United States.

Chief Executive Michael Leiters is steering the company toward a value over volume approach. Porsche will prioritize high-end sports cars like the 911 and luxury SUVs, which carry higher profit margins. The strategy also marks a return to combustion-engine models after expensive electric vehicle projects under former CEO Oliver Blume.

Leiters plans to cut development expenses by sharing vehicle platforms with fellow Volkswagen group brand Audi. He also intends to reduce costs across the board to stabilize the company's finances. The goal is to strengthen the brand's unique positioning while delivering new models in the most profitable segments.

The restructuring mirrors broader changes at parent company Volkswagen, where Blume remains CEO. Volkswagen is negotiating a major overhaul with unions that includes up to 100,000 layoffs worldwide and the closure of up to four German plants. Porsche's workforce reduction represents a fifth of its total staff, reflecting intense pressure from low-cost Chinese rivals across the German auto sector.