Volkswagen plans up to 50,000 job cuts in Germany by 2030 amid profit slump

Volkswagen Group is planning to reduce its workforce in Germany by up to 50,000 jobs by 2030, as the company seeks to cut costs following a sharp decline in profits.

The job reductions will affect several brands within the group, including Audi and Porsche. The move is part of a broader restructuring strategy aimed at improving efficiency and maintaining competitiveness in a rapidly changing global automotive market.

According to company figures, Volkswagen’s net profit after tax fell by 44% in 2025, dropping from €12.4 billion to €6.9 billion, marking the company’s lowest profit level since 2016.

The decline has been attributed to multiple factors, including high restructuring costs linked to the transition toward electric vehicles, growing competition from Chinese automakers, and a 25% import tariff imposed by the United States on certain vehicle imports.

Volkswagen has already reached an agreement with labour unions to eliminate 35,000 jobs through measures described as “socially responsible,” with the aim of saving around €15 billion in costs. An additional 15,000 job reductions are expected over the coming years, bringing the total planned cuts to about 50,000 positions by the end of the decade.

The company’s finance chief has indicated that the current profit margin of 4.6% is not sustainable in the long term. For 2026, Volkswagen expects its operating margin to fall within a range of 4% to 5.5%, potentially remaining close to or below the current level.

Volkswagen has also faced declining sales momentum in China, historically one of its most profitable markets. At the same time, Chinese automotive brands are expanding their presence in Europe, increasing competitive pressure on established manufacturers.

The transition to electric mobility has added further strain, as automakers invest heavily in battery technology, new platforms and production restructuring.

Despite the current challenges, Volkswagen has said it expects business conditions to improve in the coming years. The company stated that cost reductions and operational restructuring will remain central to its strategy as it navigates industry changes and the shift toward electric vehicles.