Porsche is preparing further cost-cutting measures as it confronts falling sales in China and rising tariffs in the U.S., according to a memo obtained by Bloomberg. CEO Oliver Blume told employees that negotiations with labor representatives will begin later this year to improve profitability, aiming to raise operating margins from 8.6% to between 15% and 17%. The luxury automaker faces pressure from weaker-than-expected EV demand and intensifying competition in China. In the first half of 2025, global sales dropped 6% to 146,391 units. Deliveries in China fell 28%, while North America saw a 10% rise. Porsche follows parent company Volkswagen’s strategy of cutting costs in Germany, where high labor expenses have prompted plans to cut 35,000 jobs over five years.