Shares in the German carmaker slump following reports of a plan to cut up to 100,000 jobs
Volkswagen already said in March that it was axing 50,000 jobs in Germany.
Volkswagen's stock is on track to hit a 15-year low after reports the German car maker will cut up to 100,000 jobs.
Shares in the Tiguan and Atlas manufacturer declined by almost 2% on the Frankfurt stock exchange during Monday's session. If that trajectory continues, it would mark the lowest close since October 2010, according to Dow Jones Market Data.
The slump follows a report from the German business publication Manager Magazin Friday afternoon before the Frankfurt closing bell that Volkswagen (XE:VOW) was planning to ax as many as 100,000 positions. This would represent close to one in six of the company's more than 650,000 employees, according to its annual report for last year.
The news report also said that Volkswagen plans to spin off its core VW brand into different entities. The company's portfolio consists of 10 brands, including Porsche, Bentley and Audi.
Volkswagen did not immediately respond to a request for comment.
Industry analysts at Citigroup led by Harald Hendrikse applauded the company's management but noted that the reported planned changes also highlight "how tough the [estimated fiscal 2026] situation has become given E.U. (German) industrial policy; how much restructuring needs to be done; and how [original equipment manufacturers] need to reduce investment in this structurally weak(ening) [return on invested capital] industry," they wrote. "Big changes."
The company, headquartered in the city of Wolfsburg, already announced in March that it would cut 50,000 jobs in Germany by 2030, after post-tax profits plunged by 44% in fiscal 2025. And last week, Volkswagen announced it was selling its majority stake in engine maker Everllence.
This comes as European carmakers face increasing competition from Chinese rivals like BYD (CN:002594), Changan (CN:000625) and Chery (HK:9973), which are gaining ground in the electric-vehicle industry. Companies have also had to deal with a hit from U.S. tariffs imposed by President Donald Trump.
If confirmed, the planned restructuring would be "excellent news," equity research firm AlphaValue wrote in a note on Monday, but it added that it remains skeptical, partly because of the power German labor unions hold.
"In any case, these kinds of rumors/reports only highlight the very difficult situation Western carmakers are in," AlphaValue said. "Competition from China is intensifying (arguably better products and an increasing need to massively export to offset a slowdown on the Chinese market) while the European regulation remains adverse for European car manufacturers by imposing very drastic changes on a pace that is unsustainable."
-Nora Redmond
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(END) Dow Jones Newswires
June 29, 2026 09:28 ET (13:28 GMT)
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