Porsche Pulls The Plug On E-Bike, Battery & Software Units Amid Major Reset

Porsche is tightening its focus on its core automotive business after announcing the shutdown of three subsidiaries tied to batteries, e-bikes, and networking software.

The restructuring move comes as the German automaker grapples with falling sales, declining profits, and shifting market conditions that are forcing it to rethink long-term investments beyond its flagship sports car operations.
 

TL;DR

 

• Porsche is shutting down Cellforce Group, Porsche eBike Performance, and Cetitec
• More than 500 employees are expected to lose their jobs
• The move follows Porsche’s broader strategic realignment and cost-cutting efforts
• Porsche says it is prioritizing its “core business” amid changing market conditions
• The automaker is also moving toward a “technology-open powertrain strategy”

 

Porsche Shuts Down Cellforce Battery Division Amid EV Strategy Shift

The biggest casualty of Porsche’s restructuring is Cellforce Group GmbH, the company’s battery subsidiary based in Kirchentellinsfurt. The division had already undergone a significant overhaul in 2024 after Porsche abandoned plans to manufacture its own batteries at scale, instead repositioning Cellforce as a research and development operation.

Now, Porsche says even that structure no longer fits its long-term strategy.

Around 50 employees at Cellforce are expected to be affected as management begins discussions with the works council regarding the closure of the business.

The decision signals a broader shift in Porsche’s electric vehicle approach. While the automaker remains committed to electrification, its “technology-open powertrain strategy” suggests it may increasingly rely on external suppliers and partnerships rather than developing battery technology entirely in-house.

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Porsche eBike Performance Closure Reflects Cooling Demand In Premium E-Bike Market

Porsche is also discontinuing Porsche eBike Performance GmbH, a subsidiary created to develop and commercialize high-performance e-bike drive systems globally.

The company cited dramatically changed market conditions in the e-bike segment as the reason for shutting down operations. The closure affects facilities in Ottobrunn and Zagreb and impacts around 350 employees, making it the largest workforce reduction among the three subsidiaries.

The move reflects growing pressure across the global e-bike market, which experienced explosive demand during the pandemic years but has since slowed amid weakening consumer demand and oversupply concerns in several regions.

Porsche had previously pushed aggressively into the premium e-bike segment as part of broader mobility ambitions outside traditional sports cars and SUVs. However, the company now appears to be scaling back non-core ventures as profitability pressures intensify.
 

Porsche-Owned Cetitec Software Unit Faces Shutdown As Development Priorities Shift

The third subsidiary being discontinued is Cetitec GmbH, a Pforzheim-based software company that specialized in data communication systems for Porsche and the wider Volkswagen Group.

Porsche said changing market dynamics and shifting development priorities led to the decision. Around 60 employees in Germany and another 30 in Croatia are expected to be affected.

Overall, the closures will impact more than 500 workers.

Dr. Michael Leiters, Chairman of the Executive Board of Porsche, acknowledged the severity of the cuts while framing the move as necessary for the company’s long-term future.

“We must refocus on our core business. This is the indispensable foundation for a successful strategic realignment. This forces us to make painful cuts — including our subsidiaries,” said Leiters.