VWAGY Volkswagen AG - ADR

$VWAGY Volkswagen's Porsche may face additional 4,000 job cuts, Reuters says Volkswagen's turnaround plan sees 4,000 additional job cuts at Porsche, Reuters reports, citing German business daily Handelsblatt. The cuts would be "in addition to existing agreements," the newspaper added.

Volkswagen cut its 2026 operating return on sales forecast to a maximum of 1% from its previous range of 4%-5.5%, citing a €6 billion non-cash goodwill impairment linked to Porsche, tougher market conditions, particularly in China, and additional restructuring costs. The automaker now expects 2026 group sales of about €315 billion, around the midpoint of its previous guidance range. Special items totaling roughly €10 billion are expected to weigh on operating profit, including €900 million already booked in the first half. Excluding these effects, Volkswagen expects an operating return on sales of around 4%. The weaker outlook also reflects a faster shift in demand toward battery-electric vehicles, which has pressured results at Audi and Volkswagen Passenger Cars. Volkswagen expects additional restructuring costs and non-cash asset impairments in China to have a combined negative impact of about €2 billion in the second half. $VWAGY