Volkswagen job cuts in Germany set at 50,000 by 2030 as profits fall, citing global competition and electric vehicle transition costs

Volkswagen AG, Europe’s largest automaker, announced in Wolfsburg, Germany, on Wednesday that it plans to cut around 50,000 jobs across the Volkswagen Group by 2030, including positions at Audi and Porsche, as the company reports its lowest post-tax profits since 2016.

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Chief Executive Oliver Blume said the reduction reflects “a fundamentally different environment” in the global automotive industry, citing rising competition from Chinese manufacturers, falling demand in key markets, and the high costs of transitioning to electric vehicles.

Volkswagen’s post-tax profits for 2025 fell roughly 44%, dropping from €12.4 billion to €6.9 billion, the company reported.

Blume emphasised that the cuts would be implemented in a socially responsible manner, following an agreement with unions to reduce over 35,000 positions by 2030, saving an estimated €15 billion.

Finance Chief Arno Antlitz warned that the 2025 profit margin of 4.6% “is not sufficient in the long run,” projecting a core profit margin of 4% to 5.5% for 2026 and signalling a period of sustained financial discipline.

Volkswagen’s challenges include US import tariffs of 25%, intensified competition in Europe from Chinese brands, and falling demand in China, historically one of the company’s most profitable markets.

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Blume stressed that cost reductions will be central to maintaining competitiveness as the industry continues its shift to electric vehicles.