Volkswagen CFO says ‘too many layers, too many entities’ as carmaker doubles job-cut target
Volkswagen reported a significant drop in Q2 operating profit and revenue outlook, leading to a planned doubling of job cuts to 100,000. The CFO attributed this to high costs and a sharp decline in sales in China, where the company has lost market share to domestic rivals.
Why it matters
This indicates major structural challenges for a global automotive giant, reflecting broader pressures on Western carmakers in the competitive Chinese market and potential economic shifts impacting global manufacturing and employment.
Volkswagen reported an operating profit of 3.5 billion euros ($3.98 billion) for the April-June quarter on Friday, down nearly 10% from a year ago and well short of the 4.3 billion euros analysts had penciled in. The carmaker also tore up its revenue outlook for 2026, now expecting sales revenue to fall by as much as 3% against an earlier forecast of growth of up to 3%. Shares slipped 3% in Friday morning trade and are down close to 30% so far this year.The numbers landed days after Volkswagen confirmed it is weighing up to 100,000 job cuts—twice the figure it had previously acknowledged—in what would rank among the largest restructurings in automotive history. Chief Financial Officer Arno Antlitz was blunt about what the margin is telling management.
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