Volkswagen Plans 100,000 Job Cuts Amid Porsche SE Pressure

The Volkswagen Group plans to cut up to 100,000 jobs, doubling its previous estimate, to address excess capacity and high tariff costs. This move follows intensifying competition from Chinese car brands and a significant slump in profits.

Controlling shareholder Porsche SE is demanding a rapid and radical overhaul of the automaker to ensure sustainable competitiveness. The pressure follows a report from Porsche SE showing a 14.5% drop in adjusted half-year earnings after tax, which fell to 949 million euros.

Hans Dieter Pötsch, chairman of Porsche SE, warned that the company is at a "historic crossroads" and cautioned that delays in decision-making would exacerbate existing problems. While Volkswagen CFO Arno Antlitz stated he is not seeking job cuts or plant closures "per se," he emphasized the necessity of reducing the cost structure and increasing productivity.