Volkswagen: Profit Plunges One-Third in Q2 2026, Additional 50,000 Job Cuts Announced

Herz — Business Desk · 24 July 2026 at 06:33 · 30s summary · 3 min read

What We Know

Volkswagen, the German automotive manufacturer founded in 1937 and whose brands include Audi, Porsche, Škoda, and Seat, released its second-quarter 2026 results. Its net profit after tax fell 32.9% to €1.54 billion, down from €2.29 billion a year earlier, according to Wirtschaftswoche and Handelsblatt.

The group's global deliveries declined nearly 9% to 2.08 million vehicles. In China, historically Volkswagen's largest market, sales plunged by more than one-third to 424,300 units.

Amplified Restructuring Plan

CEO Oliver Blume cited tariffs, armed conflicts, geopolitical tensions, and increased competition to explain the decline. He announced up to 50,000 additional job cuts worldwide and questioned the future of four German plants.

These new cuts come on top of an existing restructuring plan. Volkswagen had previously announced the elimination of 50,000 jobs by 2030 — 35,000 within the core VW brand, the remainder at Audi and Porsche. More than 37,000 employees had already signed departure agreements under that plan.

Internal and Political Resistance

Unions, the works council, and the state of Lower Saxony oppose the new plans. The German federal state holds approximately 20% of Volkswagen's capital and holds two supervisory board seats, giving it decisive influence over major company decisions.

According to press reports, the plans were initially rejected at the supervisory board meeting.

Context: Two Consecutive Years of Decline

Q2 2025 had already recorded a net profit of €2.29 billion, down 36% from Q2 2024. The group is therefore experiencing two consecutive years of significant profit decline.

Timeline