STUTTGART (Germany), April 24 (Bernama-dpa) -- Employees at Germany's Porsche will not receive a bonus for the 2025 financial year due to the luxury carmaker's poor results, German Press Agency (dpa) reported.
A spokesman for the Stuttgart-based manufacturer confirmed on Thursday there would be no bonus "due to the company's financial situation."
Porsche is well known in Germany for offering high bonuses for employees, having paid them out every year since at least 2007, but the sports car giant has seen profits tumble in recent years.
In March, the carmaker reported a massive slump in profits in the 2025 financial year, plummeting by 91.4 per cent year-on-year to €310 million (US$363 million), from €3.6 billion in 2024.
Turnover fell by almost one-tenth to €36.3 billion as business in China stalled, United States (US) tariffs hit sales, and demand for electric models proved far less than expected.
The company, a subsidiary of the Volkswagen Group, decided to overhaul its strategy, offering more fossil fuel cars in a shift that incurred costs of some €2.4 billion.
Porsche has announced job cuts and a cost-cutting programme. Management will not receive a bonus either, while basic remuneration has also been frozen.
Shareholders can, however, expect a dividend, although it fell from €2.31 per share last year to €1.01.
The carmaker expects "very challenging market conditions" to persist in 2026, with sales falling again between January and March.
-- BERNAMA-dpa
