Volkswagen expands restructuring plan after profit warning

Volkswagen is preparing to accelerate its restructuring program following a profit warning tied to widespread industry pressures. Reuters reported that brand chief Thomas Schaefer addressed staff at the Wolfsburg headquarters, stating that measures agreed upon in 2024 were not sufficient. He confirmed that the company has no time to lose and will significantly step up its performance program after further talks with employee representatives.

The operational shift comes after Volkswagen cut its profit outlook for 2026. The revision reflected a 6 billion euro (6.88 billion dollars) non-cash impairment related to Porsche goodwill, weaker vehicle sales in China, and extra restructuring expenses. German newspaper Handelsblatt separately reported that Volkswagen considers an additional 4,000 roles at Porsche as surplus to requirements.

The automaker also outlined plans earlier this month to eliminate 50,000 jobs under an agreement with stakeholders. This followed an announcement in March where the group detailed 50,000 German job cuts by 2030 due to rising costs and US tariffs. Together, the plans bring total projected job losses to 100,000.

Workers across the German auto industry have staged protests against job cuts, production adjustments, and potential factory closures. Works council leader Daniela Cavallo and IG Metall head Christiane Benner have urged authorities for protection against unfair competition from China, a more effective EU subsidy structure, and the extension of a phased retirement program.