German carmaker Volkswagen has announced plans to cut around 50,000 jobs in Germany by 2030 after reporting a sharp decline in profits.
The company’s Chief Executive Officer, Oliver Blume, disclosed the plan in a letter to shareholders published in the firm’s annual report on Tuesday.
According to him, the job reductions will take place across the Volkswagen Group’s operations in Germany over the next several years.
Volkswagen had already reached an agreement with labour unions in late 2024 to reduce about 35,000 jobs by 2030, mainly within the core Volkswagen brand, as part of a restructuring plan aimed at saving roughly €15 billion annually. The latest announcement means an additional 15,000 positions will be cut.
The new layoffs are expected to affect several divisions within the group, including premium brands Audi and Porsche, as well as Volkswagen’s software subsidiary Cariad.
Europe’s largest car manufacturer has been grappling with a combination of challenges, including weak demand in Europe, high investment costs for electric vehicles and declining sales in China, the world’s largest automobile market.
Once the dominant foreign automaker in China, Volkswagen now faces stiff competition from local manufacturers such as BYD and Geely, which have gained market share in recent years.
The company reported that earnings after tax dropped by about 44 percent last year to €6.9 billion, its lowest level since 2016.
The decline was attributed to factors including tariffs imposed by Donald Trump on non-American carmakers, increased competition in China and the costly restructuring of Porsche.
Volkswagen’s Chief Financial Officer, Arno Antlitz, said further cost-cutting measures would be necessary to strengthen the company’s competitiveness.
“We can only achieve this if we continue to rigorously reduce costs,” Antlitz said, adding that the company would focus on that strategy in the coming months.
Looking ahead to 2026, Volkswagen said it expects a core profit margin of between 4 percent and 5.5 percent.
The outlook reflects ongoing uncertainties related to global trade restrictions, geopolitical tensions and volatile energy and commodity prices.
The group also noted that weaker demand for electric vehicles has forced Porsche to extend production of petrol-powered models longer than originally planned.
