Volkswagen to Cut 50,000 Jobs in Germany Amid Profit Decline
Volkswagen announces plans to reduce its German workforce by 50,000 by 2030 following a significant drop in profits.
Volkswagen has announced plans to reduce its workforce in Germany by 50,000 positions by 2030, following a significant decline in profits. The company's net profit after tax fell from €12.4 billion to €6.9 billion in 2025, marking the lowest level since 2016.
Chief Executive Oliver Blume informed shareholders that the job reductions would occur across the entire group, including brands such as Audi and Porsche. The company attributed the profit decline to factors including U.S. import tariffs, increased competition from Chinese manufacturers, and high restructuring costs associated with the transition to electric vehicles.
Volkswagen had previously agreed with unions to cut 35,000 jobs in Germany by 2030 to save approximately €15 billion. The additional 15,000 job cuts will affect premium brands Audi and Porsche, as well as the group's software subsidiary, Cariad.
The company projects a core profit margin of between 4% and 5.5% for 2026, potentially lower than the 4.6% achieved in 2025. Finance Chief Arno Antlitz emphasized the need for rigorous cost reduction, stating that the current profit margin is "not sufficient in the long run."
Volkswagen's restructuring efforts aim to enhance competitiveness and resilience amid evolving market conditions and technological advancements in the automotive industry.