Porsche is folding its Car-IT division into Research and Development from July 1, 2026, cutting its executive board structure from eight divisions to seven as the sports-car maker reshapes itself for a tougher software-led era.
The move means Porsche executive board member Sajjad Khan will stop running Car-IT as a separate board division after June 19.
He will remain linked to Porsche through a software partnership model, with his expertise still available for future Car-IT development.
Car-IT is Porsche’s in-house software and digital vehicle division. Its work covers connectivity, infotainment, driver-facing software, digital cabin interfaces and the hardware-software mix behind the user experience.
Under Sajjad, Porsche said the division helped advance connectivity and infotainment across its model range, including the new Porsche Digital Interaction design language introduced with the electric Cayenne.
From July, Car-IT will sit inside the R&D division led by Porsche deputy executive board chairman Dr Michael Steiner, who is also board member for Research and Development. That puts software closer to core vehicle engineering, which is increasingly where modern EVs and premium cars are won or lost.
Sajjad said Porsche’s engineering base, combined with faster software development, gives the company a good foundation for future software components.
The restructuring is part of a wider pullback.
Porsche is also moving to discontinue three subsidiaries: Cellforce Group in Kirchentellinsfurt, Porsche eBike Performance in Ottobrunn, and Cetitec in Pforzheim. More than 500 employees are affected.
Porsche CEO Dr Michael Leiters said: “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.”
Cellforce, Porsche’s battery cell subsidiary, no longer has what Porsche describes as a viable long-term outlook under its technology-open powertrain strategy.
Around 50 employees are affected. Porsche eBike Performance, set up to develop high-performance e-bike drive systems, will also be wound down after market conditions changed, affecting around 360 employees in Ottobrunn and Zagreb. Cetitec, which develops data-communication software for Porsche and the wider Volkswagen Group, faces closure discussions too, affecting around 60 employees in Germany and 30 in Croatia.
Porsche said its Digital Interaction interface will be rolled out to more model lines, including China-specific versions developed at its R&D site in Shanghai.
