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| Austerity measures in Stuttgart have led Porsche to close three subsidiaries and refocus on its core business. |
In a dramatic strategic U-turn, Porsche is slashing more than 500 jobs and shutting down three key subsidiaries – including its ambitious in-house e-bike motor division. The move signals a hard pivot back to the company’s core identity: building high-performance sports cars.
Stuttgart, Germany – The shine has worn off Porsche’s two-wheeled experiment. The iconic automaker announced today that it is completely winding down Porsche eBike Performance GmbH, a division it once touted as a forward-looking leap into micromobility. Roughly 350 employees in Ottobrunn (near Munich) and Zagreb, Croatia, will lose their jobs as the company retreats from designing and selling proprietary e-bike motors.
Just a few years ago, Porsche seemed all-in on electrified cycling. The idea was simple: leverage the brand’s engineering pedigree to create premium e-bike drivetrains that could compete with established players like Bosch and Shimano. But according to internal sources, fundamentally altered market conditions – including oversupply, falling margins, and shifting consumer preferences – have forced a painful retreat.
According to a recent Reuters report, the restructuring goes far deeper than just bicycles. “Porsche AG to cut over 500 jobs as it sharpens focus on core business,” the news agency detailed on May 8, 2026. You can read the full breaking coverage here. The article confirms that the job cuts are spread across Germany and Croatia, hitting everything from battery production to automotive software.
No More Porsche-Branded E-Bike Motors – What Happens to the Bikes?
If you still want a Porsche bicycle, don’t worry – they aren’t disappearing entirely. However, future models will no longer feature Porsche’s own motor technology. Instead, the company will outsource production entirely to its long-standing German partner, Rotwild. Bicycles bearing the Porsche crest will remain available through select dealers, but they will essentially be rebadged Rotwild designs. For purists, this feels like a quiet admission that e-bikes were never more than a side hustle.
Two More Subsidiaries on the Chopping Block
The e-bike closure is just the headline. Porsche is also permanently shuttering two other ventures:
- Cellforce Group (Kirchentellinsfurt) – This battery subsidiary once promised next-generation high-performance cells for electric sports cars. But production was largely halted last year, and now all ~50 positions are being eliminated. The dream of a Porsche-built battery has officially died.
- Cetitec (Pforzheim & Croatia) – A software company specializing in data communication for connected vehicles. Around 60 jobs in Pforzheim and another 30 in Croatia will vanish as Porsche integrates (or abandons) its in-house telematics efforts. The Car IT department at the executive board level is also being dissolved, reducing the board from eight divisions to seven. Starting in July, vehicle software will be absorbed into general vehicle development.
CEO Michael Leiters: “An Indispensable Foundation”
Porsche’s CEO, Michael Leiters, isn’t sugarcoating the news. In a statement to employees, Leiters described the cuts as “an indispensable foundation for a successful realignment.” The subtext is clear: Porsche overextended itself chasing adjacent markets, and now it’s paying the price.
The numbers back him up. Porsche’s Q1 2026 financial results have taken a brutal hit. A massive slump in demand from China – once Porsche’s largest single market – has collided with new US tariffs on European imports. The result is a balance sheet that CFO Lutz Meschke recently called “unsatisfactory” in an internal memo. By ditching the e-bike, battery, and software side projects, Porsche hopes to save hundreds of millions annually and refocus every engineering hour on its core sports car lineup – including the upcoming all-electric Cayenne and next-gen 911 hybrid.
What This Means for Workers and the Industry
For the 500+ employees affected, the news is devastating. Works councils in Ottobrunn and Pforzheim have already demanded a “socially acceptable transition,” including severance packages and outplacement services. Porsche has pledged to work with local labor authorities, but no detailed plan has been released.
For the broader automotive industry, Porsche’s retreat sends a sobering signal. If a brand with near-limitless pricing power can’t make e-bikes or niche batteries work, what chance do smaller players have? The era of “diversification at all costs” appears to be ending. Instead, automakers are rediscovering an old truth: focus on what you do best, and cut everything else.
Bottom line: Porsche is no longer pretending to be a micromobility or battery startup. It’s a sports car company again – and it’s willing to sacrifice 500+ jobs to prove it.