Volkswagen warns planned cost cuts are not enough after 14% drop in first-quarter profit

volkswagen posted first-quarter operating profit of 2.5 billion euros, down 14.3% from a year ago and well below the 4 billion euros analysts expected. sales revenue slipped 2.5% to 75.66 billion euros. shares fell about 2% on thursday and are down more than 18% year-to-date. ceo oliver blume cited wars, tariffs, and chinese competition as headwinds. cfo arno antlitz said the company's planned cost cuts — including 50,000 job cuts in germany by 2030 — are not enough. he called for "fundamental transformation" including fewer product platforms and fewer decision-making layers. volkswagen now expects operating return on sales of 4% to 5.5% in 2026, up from 2.8% in 2025. citi analysts said they support more cuts but warned of further exceptional costs ahead.