Automotive giant Volkswagen announced on Tuesday that it would cut 50,000 jobs in Germany by 2030 after its profit fell to the lowest level in nearly a decade.
The development comes as the 10-brand group struggles with intensifying competition from Chinese electric vehicle makers, rising production costs, and the impact of US tariffs, which have together weighed on its earnings.
“In total, around 50,000 jobs are due to be cut by 2030 across the Volkswagen Group in Germany,” Volkswagen CEO Oliver Blume said in a letter to shareholders in the firm’s annual report.
Which brands will be impacted?
The group had already reached a deal with unions in late 2024 to lay off 35,000 employees by 2030 at its core brand, as part of a broader plan to save 15 billion euros annually, news agency AFP reported.
The additional cuts will extend beyond the core Volkswagen brand, affecting workers of its premium marques Audi and Porsche, as well as the group’s software subsidiary Cariad, CEO Blume added.
Volkswagen faces stiff competition
Even before US President Donald Trump’s administration imposed tariffs on non-American carmakers in 2025, Volkswagen had been dealing with challenges such as sluggish demand in Europe, the high cost of investing in EVs despite patchy demand, and sharp falling sales in China.
Headquartered in Germany, Volkswagen has long been a dominant player in the world’s largest auto market, China. But, the carmaker is now facing fierce competition from local rivals, with its sales slipping behind those of other brands such as BYD and Geely.
Blume told a press conference that Chinese car brands planning to tap the European market to export their way out of an intense price war at home would further increase the pressure on Volkswagen, the news agency reported.
“We need to prepare ourselves for the fact that we will come under price pressure here,” he said. “This is a big incentive for us to work intensively on the cost side.”
Volkswagen earnings
Volkswagen reported an operating profit of 8.9 billion euros ($10.4 billion) for 2025, marking a 53% from the previous year. The figure also fell short of analysts’ expectations of 9.4 billion euros, according to LSEG consensus data.
The carmaker’s full-year revenue stood at nearly 322 billion euros, compared to 324.7 billion euros in 2024, and the company’s outlook for sales growth is relatively modest in 2026. Volkswagen said it expects revenue to develop in a range between 0% to 3% this year, falling short of analyst expectations.
Arno Antlitz, chief operating officer and chief financial officer at Volkswagen, described 2025 as a “really challenging” year but assured investors that the company remains “well positioned” in Europe, according to CNBC.
Shares of Volkswagen rose nearly 4% on early Tuesday. The stock is down more than 15% in a year-to-date basis.
