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Volkswagen to slash 50,000 jobs by end of this decade
10 Mar 2026

Volkswagen, Europe's largest carmaker, has announced plans to cut 50,000 jobs in Germany by 2030.

The decision comes as the company's post-tax profits have plummeted by nearly 44% in 2025.

Chief Executive Officer Oliver Blume revealed that the cuts would affect the entire group including its Audi and Porsche brands.

US import tariffs and EV transition costs hit profits
Profit decline

Volkswagen's profits have been hit by US import tariffs, fierce competition from China, and high restructuring costs associated with its transition to electric vehicles (EVs).

The company expects a recovery in 2026 but will focus on "rigorously" reducing costs.

Blume said in his letter to shareholders that they are operating in a "fundamentally different environment."

Previous agreement to cut over 35,000 jobs
Job reduction plan

The Volkswagen Group had already agreed with unions to cut over 35,000 jobs across Germany in a "socially responsible manner" by 2030.

This move is part of a strategy to save some €15 billion.

The company has been struggling with declining demand for its cars in China and rising competition from Chinese brands entering Europe.

Net profit after tax fell sharply last year
Financial outlook

Volkswagen's net profit after tax fell from €12.4 billion to €6.9 billion last year.

For 2026, the firm predicts a core profit margin of between 4% and 5.5%, possibly lower than this year's 4.6%.

Finance boss Arno Antlitz warned that the group's profit margin is "not sufficient in the long run" and further cost-cutting is necessary to ensure sustainability.