London —
Volkswagen took a sizeable knock to its profits during the second quarter as it considers cutting tens of thousands of jobs – part of its attempt to better compete against its Chinese rivals.
The German automaker said it made €3.5 billion ($4 billion) in operating profit in the three months to the end of June, down almost 10% from the same period last year. It also slashed revenue expectations for the current financial year from a rise of up to 3% to a decline of up to 3%.
“The environment for the automotive industry remains extremely challenging: geopolitical crises, trade conflicts, high regulatory requirements, volatile markets and intensified competition,” CEO Oliver Blume said in a statement.
Shares in Volkswagen Group, which also owns Skoda and Audi, have tumbled more than 30% over the past 12 months and were trading down almost 2% early afternoon local time on Friday.
