Porsche is accelerating its restructuring with the closure of three subsidiaries and the elimination of 500 jobs.

German automaker Porsche has announced the upcoming closure of three subsidiaries as part of a major strategic realignment aimed at refocusing the group on its core automotive business. More than 500 jobs will be cut, the Stuttgart-based brand indicated on Friday, amid a slowdown in the high-end electric vehicle market.

Among the affected entities is Cellforce, a company specializing in high-performance batteries. The subsidiary, which had already been solely focused on research and development since ceasing production last year, will disappear due to a lack of "sufficiently viable prospects." Approximately fifty jobs are at risk.

Porsche is also closing its electric bicycle division

The group will also end the operations of Porsche eBike Performance, created to develop propulsion systems for premium electric bicycles. The sites in Ottobrunn, near Munich, and Zagreb, Croatia, will be closed, resulting in approximately 350 job losses. The subsidiary Cetitec, specializing in data communication software for Porsche and Volkswagen, will also be dissolved, with nearly 90 positions eliminated in Germany and Croatia.

Under pressure to reduce costs, Porsche had already announced in early 2025 the elimination of 1,900 jobs in other areas of the group. The manufacturer now aims for a 15% reduction in its workforce by 2029, while prioritizing voluntary departures.

The electric transition is slowing down

Porsche has significantly revised its strategy in recent months after observing that the global transition to electric vehicles is progressing more slowly than anticipated. The manufacturer has therefore decided to refocus on internal combustion and hybrid powertrains, particularly for its sports and luxury models.

This restructuring comes at a difficult time for the German automotive industry, which is facing a slowdown in the Chinese market, competition from Asian manufacturers and declining profitability of massive investments in electric vehicles.