Volkswagen lowers 2026 sales outlook plans 100,000 job cuts

Volkswagen reported a sharp decline in second-quarter profit and dramatically reversed its full-year sales outlook on Friday, July 24, 2026, as intense competition and high costs forced the German automaker to pursue a massive restructuring plan involving up to 100,000 job cuts.

Operating profit for the April-to-June quarter fell nearly 10% year-over-year to 3.5 billion euros, missing analyst expectations of 4.3 billion euros. The company's operating margin was 4.2%. While quarterly revenue of 82.4 billion euros exceeded forecasts, profitability was hit by a 500-million-euro charge for halting U.S. production of its ID.4 electric SUV and by selling more lower-margin vehicles.

In a significant reversal, Volkswagen abandoned its previous forecast for 2026 revenue growth of up to 3%, stating it now expects sales to decline by as much as 3%. For the first half of the year, operating profit fell 11.6% to 5.93 billion euros, with the operating return on sales dropping to 3.8%. Global vehicle deliveries declined 8.4% to 3.997 million units, driven by a severe 31.6% collapse in sales in China.

Chief Financial Officer Arno Antlitz described the results as a wake-up call, stating that a...