Volkswagen Layoffs: Carmaker to cut 50,000 jobs in Germany as profit falls, EV business faces pressure
Automotive giant Volkswagen announced on Tuesday it would cut 50,000 jobs in Germany by 2030 after profits fell to its lowest level in nearly a decade.
The development comes as the 10-brand group struggles with increased competition from Chinese electric vehicle makers, rising production costs and the impact of US tariffs that are weighing on its earnings.
“In total, around 50,000 job cuts are expected across the Volkswagen Group in Germany by 2030,” Volkswagen CEO Oliver Blume wrote in a letter to shareholders in the firm’s annual report. he said.
Which brands will be affected?
The group reached a deal with unions in late 2024 to cut 35,000 jobs across its main brand by 2030, as part of a wider plan to save 15 billion euros annually, AFP news agency reported.
CEO Blume added that further cuts would extend beyond the core Volkswagen brand, affecting employees at Audi and Porsche’s premium brands as well as the group’s software subsidiary Cariad.
Volkswagen faces stiff competition
Even before U.S. President Donald Trump’s administration imposed tariffs on non-American automakers in 2025, Volkswagen was dealing with challenges such as sluggish demand in Europe, the high cost of investing in electric vehicles despite erratic demand, and sharply falling sales in China.
Volkswagen, headquartered in Germany, has long been a dominant player in China, the world’s largest auto market. But the automaker now faces fierce competition from local rivals, with sales lagging behind other brands such as BYD and Geely.
Blume said at the press conference that Chinese automobile brands are planning to enter the European market to export from the intense domestic price war, which will further increase the pressure on Volkswagen.
“We need to prepare ourselves for the fact that we will be under price pressure here,” he said. “This is a great incentive for us to work intensively on the cost side.”
Volkswagen’s earnings
Volkswagen reported operating profits of 8.9 billion euros ($10.4 billion) for 2025, up 53% from the previous year. According to LSEG consensus data, this figure was below analysts’ expectations of 9.4 billion euros.
The automaker’s full-year revenue stood at around 322 billion euros, compared to 324.7 billion euros in 2024, and the company’s outlook for sales growth in 2026 is relatively modest. Volkswagen said it expects revenue to grow between 0% and 3% this year, falling short of analyst expectations.
Arno Antlitz, Volkswagen’s chief operating officer and chief financial officer, called 2025 a “really challenging” year but assured investors that the company remains “well positioned” in Europe, according to CNBC.
Shares of Volkswagen were up nearly 4% in early trading Tuesday. The stock is down more than 15% since the beginning of the year.
