Volkswagen profit plunges as carmaker weighs mass job cuts

Volkswagen on Friday said that its net profit plunged in the second quarter as the crisis-hit carmaker, weighing up to 100,000 job cuts worldwide, grapples with declining sales in China.

Net profit for the three months to the end of June came in at 1.54 billion euros ($1.75 billion), the 10-brand group said, a fall of 32.9 percent on the same period last year.

Volkswagen revised down its sales forecast for 2026 on Friday, now expecting a decline of up to 3percent, after its operating profit slumped in the second quarter, dragged by tariffs and intense competition from China.

The group had previously forecast sales growth of between 0 and 3 percent this year.

The German auto group, which includes subsidiaries Porsche and Audi, reported a lower-than-forecast operating profit of €3.5 billion ($3.98 billion) in the April-to-June period, down 9.5 percent year on year.

CEO Oliver Blume said planned restructuring measures, including a proposal to cut 100,000 jobs, would be the group’s most comprehensive overhaul yet.