Volkswagen announced plans to cut 50,000 jobs across Germany by 2030, as post-tax profits fell by 44% in 2025, marking their lowest level since 2016. CEO Oliver Blume said the reductions will impact the entire group, including Audi and Porsche, and follow earlier agreements with unions to cut over 35,000 jobs in a socially responsible manner.

The company cited challenges including US import tariffs, declining demand in China, high restructuring costs from the shift to electric vehicles, and rising competition from Chinese carmakers entering Europe. Net profits fell from €12.4 billion to €6.9 billion, and Volkswagen projects a core profit margin of 4% to 5.5% for 2026, potentially lower than the current 4.6%.

Finance chief Arno Antlitz emphasized the need for rigorous cost reductions to maintain profitability in the long run. The company expects the job cuts and efficiency measures to save around €15 billion while navigating a fundamentally changed automotive market.

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