Volkswagen profit falls a third as China sales slump, sparking major job cuts

Volkswagen reported a 32.9% drop in net profit for the second quarter of 2026, falling to €1.54 billion. Global deliveries declined by almost 9% to 2.08 million vehicles, with sales in China falling by more than a third – 424,300 units versus the same period a year earlier. The group cut its full‑year revenue outlook to a range of –3% to 0%, reversing a previous forecast of up to +3% growth.

CEO Oliver Blume attributed the weakness to higher tariffs, geopolitical tensions and intensified competition, especially from Chinese EV makers. In response, Volkswagen expanded its cost‑reduction programme, planning up to 50,000 additional job reductions worldwide on top of the 50,000 positions already slated for removal by 2030. Of those, 35,000 would affect the core VW brand, with the remainder spread across Audi, Porsche and other subsidiaries. The proposals face strong opposition from unions, works councils and the state of Niedersachsen, which holds a 20% stake in the company.

Porsche, a VW subsidiary, approved a further round of layoffs in Germany, adding 5,000 jobs to the 3,900 cuts already agreed, bringing the total at the Stuttgart plant to roughly 23,000 employees. The cuts will mainly affect administrative, research and development staff as the brand streamlines its model portfolio amid weaker demand.