Volkswagen and Porsche shares kept falling on Monday after Friday's profit warning, which included a €6 billion goodwill impairment at Porsche. Porsche CEO Michael Leiters told staff in an internal memo that no further job cuts are planned, pushing back on a report of another 4,000 layoffs.
Volkswagen shares fell 2% at 0713 GMT, extending Friday's decline after the automaker slashed its 2026 outlook. Porsche's stock dropped a further 2.8% in the same session.
The company cut its 2026 profit margin outlook to 1% at the most, down from a prior range of 4% to 5.5%. Volkswagen blamed a sluggish Chinese market, higher provisions for retirements and the dire situation at Porsche, which took a €6 billion ($6.88 billion) goodwill impairment at the luxury sportscar division.
Porsche SE shares also slide
Porsche SE, Volkswagen's biggest shareholder, slashed its own outlook on Friday and saw its shares fall 3.5% on Monday.
Porsche CEO denies further job cuts
Leiters responded to a Handelsblatt report that said Volkswagen's supervisory board viewed another 4,100 jobs at the brand as superfluous, on top of 9,000 layoffs already agreed. According to Reuters: "There are no plans to cut an additional 4,000 jobs at Porsche", Leiters said in the memo.
He added that the existing restructuring plan had been approved by Porsche's own supervisory board and that the company does not anticipate any changes to it. The memo was seen by Reuters on Monday.
Sources: Investing.com/Reuters, Investing.com/Reuters
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