Volkswagen is preparing to step up its restructuring programme after issuing a profit warning tied to pressures across the sector.
According to Reuters, brand chief Thomas Schaefer addressed staff at Volkswagen’s Wolfsburg headquarters, saying: “I had hoped that the measures agreed in 2024 would already be sufficient. Unfortunately, that has not been the case.”
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“We have absolutely no time to lose and will therefore significantly step up our performance programme once again”, he added, noting that the company and employee representatives would hold talks on next steps.
The news comes as German car industry workers staged protests following the news of planned job losses, possible changes to production and the closure of factories.
Volkswagen cut its profit outlook for 2026 last week, citing a €6bn ($6.88bn) non-cash impairment tied to Porsche goodwill, weaker sales in China and additional restructuring expenses.
Growing demand for electric vehicles, which generate lower margins, has added further strain, underscoring the sector’s continued dependence on combustion-engine models that have long underpinned Germany’s economy.
Earlier this month, Volkswagen outlined plans to cut a further 50,000 jobs under a restructuring agreement reached with stakeholders, a move that helped prevent a broader standoff with unions, although labour representatives continued to push management to address the underlying causes.
This follows an announcement in March, when Volkswagen Group said it would cut 50,000 jobs in Germany by 2030 after a sharp fall in profits driven by rising costs and US tariffs, taking total planned job losses to 100,000.
Following the revised forecast, German newspaper Handelsblatt reported separately that Volkswagen regards an additional 4,000 roles at Porsche as surplus to requirements.
European carmakers face growing competition from Asian rivals, both globally and within their domestic markets, presenting a significant challenge for Volkswagen as it contends with overcapacity in Europe, US tariffs and falling profitability in China.
Works council leader Daniela Cavallo and IG Metall head Christiane Benner called for stronger protection against unfair competition from China, a more effective EU subsidy framework, and the continuation of a phased retirement scheme.
