Volkswagen Reports €5.9 Billion Loss and Massive Job Cuts
Volkswagen Group reported its largest quarterly loss since 2015 and announced a restructuring plan to cut up to 120,000 jobs by 2030.
The Volkswagen Group reported a third-quarter operating loss of approximately €5.9 billion, marking its steepest quarterly decline since 2015. This result exceeded analyst forecasts and represents a sharp increase from the €1.1 billion loss recorded during the same period last year. Quarterly sales fell 6.3% to €75.3 billion, driven by a shrinking market in China where deliveries dropped more than 30% in the first nine months of the year.
Company leadership attributed the financial crisis to punishing tariffs in the United States, intense competition in Europe, and the high costs of transitioning to electric vehicles. While electric vehicle sales have grown, they currently generate lower earnings than combustion-engine vehicles, further squeezing margins. The group also warned of a €10 billion hit to annual profits due to the declining value of its stake in Porsche.
In response, CEO Oliver Blume and CFO Arno Antlitz are launching the most sweeping restructuring in the company's 89-year history. The plan aims for €31 billion in cost cuts and the elimination of between 100,000 and 120,000 jobs by 2030, representing roughly 15% of the global workforce. To improve efficiency, the automaker will halve its model portfolio and streamline organizational structures.
