Volkswagen to accelerate restructuring after profit warning

Volkswagen is preparing to significantly step up its restructuring program after issuing a profit warning. The company's shares were removed from the benchmark Euro Stoxx 50 index on Monday, September 21, 2026.

Brand chief Thomas Schaefer addressed staff at the company's Wolfsburg headquarters. He stated that earlier measures agreed in 2024 had proven insufficient. "We have absolutely no time to lose and will therefore significantly step up our performance programme once again," Schaefer said. He noted that company management and employee representatives would hold talks on the next steps.

Profit warning and job cut plans

Volkswagen cut its profit outlook for 2026 last week. The warning cited a €6 billion non-cash impairment tied to Porsche goodwill, weaker sales in China, and additional restructuring expenses. Growing demand for electric vehicles, which generate lower margins, has added further strain. This shows the sector's continued dependence on combustion-engine models.

Earlier this month, Volkswagen outlined plans to cut a further 50,000 jobs under a restructuring agreement reached with stakeholders. This move helped prevent a broader standoff with unions, although labor representatives continued to push management to address underlying causes. This follows an announcement in March, when Volkswagen Group said it would cut 50,000 jobs in Germany by 2030 after a sharp fall in profits. That announcement was driven by rising costs and US tariffs. The combined plans bring total announced job losses to 100,000.

Following the revised forecast, German newspaper Handelsblatt reported separately that Volkswagen regards an additional 4,000 roles at Porsche as surplus to requirements.

Industry pressures and worker protests

The news comes as German car industry workers staged protests. The protests followed news of planned job losses, possible changes to production, and the closure of factories. European carmakers face growing competition from Asian rivals, both globally and within their domestic markets. This presents a significant challenge for Volkswagen as it contends with overcapacity in Europe, US tariffs, and falling profitability in China.

Works council leader Daniela Cavallo and IG Metall head Christiane Benner called for stronger protection against unfair competition from China. They also advocated for a more effective EU subsidy framework and the continuation of a phased retirement scheme.