Volkswagen will cut 50,000 jobs in Germany by 2030 after reporting its lowest profits since 2016. The job cuts will affect the entire group, including Audi and Porsche, and are part of a broader cost-reduction strategy.
In 2025, Volkswagen’s net profit after tax dropped by 44 per cent, falling from €12.4 billion to €6.9 billion. The company blamed the decline on several factors: high restructuring costs from its shift to electric vehicles, stiff competition from Chinese carmakers, and a 25 per cent import tariff imposed by the US.
The company has already agreed with unions to cut 35,000 jobs in a “socially responsible” way, aiming to save €15 billion. The additional 15,000 job cuts will bring the total to 50,000 by the end of the decade.
Volkswagen’s finance chief warned that the current profit margin of 4.6 per cent is not sustainable. For 2026, the company expects a margin between 4 per cent and 5.5 per cent, which could be even lower than this year’s figure. He stressed the need for aggressive cost-cutting to stay competitive.
The company has been hit hard by falling demand in China, once its most profitable market. At the same time, Chinese brands are expanding into Europe, intensifying competition. The shift to electric vehicles has also added pressure, with high investment and restructuring costs.
Volkswagen says it expects a recovery in the coming year but will focus on reducing costs to protect its long-term viability.
