Porsche Shuts Down Cellforce Amid Strategic Shift and Job Cuts

Porsche's made a bold move, shutting down its battery outfit, Cellforce, and two other subsidiaries. Why? They're tightening the belt to focus on their main gig, thanks to tough markets in the US and China.

Based in Stuttgart, the luxury car maker's closures will see 500 employees affected, including those at eBike Performance GmbH and software firm Cetitec. CEO Michael Leiters says it's back to basics, meaning more gas engines and less electric. "Painful cuts," he called them.

Shifting Gears from Electric Dreams

Axing Cellforce, a big player in Porsche's electric dreams, marks a shift. They once aimed high with EVs, but now, not so much. Originally, 50 Cellforce folks were on the chopping block.

eBike Performance GmbH, working on e-bike drives, is also closing. This hits 350 workers in Ottobrunn and Zagreb.

Money Woes and Market Pressures

Porsche's been in a financial bind, seeing profits tank by 91% in 2025. Tariffs in the US, lagging sales in China, and underwhelming electric cars are to blame. Former CEO Oliver Blume's EV focus cost 2.4 billion euros, and 700 million euros of that went down with Cellforce.

"Cellforce's end is part of Porsche’s shift back to gas," said management.

Industry Backdrop

Porsche's move comes amid a tricky time for carmakers, juggling EV innovation with gas profits. Shutting Cellforce shows legacy car brands' tough road in a changing market.

A Tale of Two Strategies

While Porsche backs off EVs, Tesla's all in. This split shows how different car companies are tackling the future.

The Unknowns

• When will the shutters come down completely?
• How will Porsche handle the job shifts?
• What's next for Porsche and EV tech?

Why It Matters

Closing Cellforce and others marks a big shift for Porsche and hints at broader industry trends. As they stick to their roots, questions loom about the luxury EV market's future, especially as others bet big on electric.