Porsche has shut down its eBike Performance division and cut more than 500 jobs globally as the luxury carmaker retreats to its automotive roots.

The move forms part of a sweeping strategic realignment by Porsche AG, which is also winding down battery technology unit Cellforce Group and software specialist Cetitec GmbH.

The cuts follow Porsche’s planned exit from Bugatti Rimac and the broader Rimac Group, signalling a sharp pullback from several non-core technology ventures.

In total, around 360 jobs tied to Porsche’s e-bike operations in Germany and Croatia will be lost, with another 140 roles affected across the battery and software businesses.

Porsche CEO Dr Michael Leiters said the company was being forced to make “painful cuts” to refocus on its core sports car business.

“We must refocus on our core business. This is the indispensable foundation for a successful strategic realignment,” Leiters said.

The closure also places the future of e-bike motor brand Fazua in doubt.

Porsche acquired the lightweight drive system maker in 2022 as part of a push into premium electric mobility. Fazua motors are currently used by major bike brands including Canyon, Santa Cruz, Cervélo, Pivot and YT Industries.

While Porsche says existing Fazua customers and dealers will continue to receive spare parts and service support, the closure raises concerns across the global e-bike industry about long-term platform support and future product development.

Porsche’s retreat highlights the growing pressure in the once-booming e-bike market, which has weakened after years of explosive pandemic-era growth.

European sales have slowed amid inventory oversupply, discounting pressure and weakening consumer demand.

The decision also reflects broader financial pressures facing Porsche and parent company Volkswagen as global automakers battle softer EV demand, rising costs and the impact of US tariffs.

Despite exiting its drive-system business, Porsche will continue selling Porsche-branded e-bikes manufactured by German partner Rotwild.