Key facts
- Volkswagen will cut approximately 50,000 jobs in Germany by 2030.
- The restructuring aims to reduce costs amid declining profits and increased competition.
- Post-tax profits fell by around 44% in 2025.
- The company faces challenges from US import tariffs and Chinese automotive competition.
- Significant restructuring costs are associated with the shift to electric vehicles.
Volkswagen announced a significant restructuring plan, including the elimination of approximately 50,000 jobs in Germany by 2030. The decision by the German auto giant's board comes as the company grapples with a substantial drop in profits, which fell by around 44% in 2025 to their lowest level since 2016.
Chief executive Oliver Blume communicated the job cuts to shareholders, stating they would affect the entire Volkswagen Group, encompassing brands like Audi and Porsche. The company cited intense competition from Chinese automakers, US import tariffs, and the high costs associated with transitioning to electric vehicles as key factors contributing to its financial challenges.
Volkswagen's finance chief, Arno Antlitz, emphasized the necessity of rigorously reducing costs, noting that the current profit margin is not sustainable long-term. The company is targeting a core profit margin of between 4% and 5.5% for 2026. This move follows a previous agreement with unions to reduce over 35,000 jobs by 2030, aimed at saving €15 billion. The company has experienced a decline in demand in China, a historically strong market, while simultaneously facing increased competition from Chinese brands entering the European market.