Volkswagen puts restructuring cost at €31bn

Volkswagen disclosed on 29 October 2026 that its restructuring would cost €31 billion, Euronews said. The carmaker also posted a €5.8 billion after-tax loss for July–September, distinct from its €5.86 billion operating loss.

The restructuring and planned job cuts were already under way; the cost disclosure was not a new round of cuts. The German carmaker faces electric-vehicle transition costs, falling demand and fierce competition in China. In September 2026, Volkswagen warned of a €10 billion hit to annual profit, driven mainly by the value of its stake in Porsche, which is also struggling in China.

After-tax loss adds a separate earnings measure

Fortune said Volkswagen’s after-tax loss for July–September was €5.8 billion. This is the net, or bottom-line, result after taxes and other non-operating items, rather than the operating result from the business’s activities.

Fortune said large one-off charges compounded weak demand in China, US tariffs—taxes on imports—and lower profits from electric vehicles. It said Volkswagen earns less per electric vehicle than per combustion-engine vehicle.

Revenue totals conflict; both accounts show a decline

DW said one-off costs, including a reduction in the value of Porsche assets, explained most of Volkswagen’s quarterly operating loss. Fortune’s quarterly revenue total differs from the figure given by Euronews and DW, although all three give the same percentage decline.

Euronews gives a €1.1 billion loss for the prior-year quarter, without identifying it as a net or operating loss.

Volkswagen said €8.7 billion in special items largely explained the decline in its nine-month operating profit. The largest component was €6.4 billion in non-cash writedowns on Porsche assets. A writedown reduces an asset’s value in the accounts; it does not itself require a cash payment.

We cannot lose any time and need to act quickly and decisively.

Job-cut accounts differ; plant closures remain possible

The workforce figures describe the ongoing restructuring, not separate new rounds of cuts. DW says the planned reduction would combine layoffs with not replacing departing or retiring staff. Fortune describes job losses and the closure of four German plants as possible outcomes of the restructuring.

Volkswagen’s own plan says competitive follow-on production cannot be guaranteed at four plants under current planning for 2031–34. The company says it is also examining alternative uses for those sites.

Volkswagen plans European factory review

Volkswagen’s wider Future Plan 2030 aims to improve efficiency in its European production network by around €1.5 billion a year. The company says its executive board is responsible for implementation, with supervisory board approval where required.

Where changes require agreements with employee representatives, Volkswagen says the responsible brands and subsidiaries will begin discussions promptly. The plan calls for a proposal for a sustainable and competitive European production structure by the end of June 2027.