Employees at Porsche will not receive a bonus for the 2025 financial year because of the German luxury car maker’s poor results.
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’s profits have tumbled in recent years.
In March, the car maker reported a slump in profits in the 2025 financial year, plummeting by 91.4 per cent year-on-year to 310 million euro ($A507 million), from 3.6 billion euro in 2024.
Turnover fell by almost one-tenth to 36.3 billion euro as business in China stalled, 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 combustion engine cars in a shift that incurred costs of 2.4 billion euro.
Porsche has announced job cuts and a cost-cutting program.
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 euro per share last year to 1.01 euro.
The car maker expects “very challenging market conditions” to persist in 2026, with sales falling again between January and March.