Volkswagen announced Tuesday that it plans to cut about 50,000 jobs in Germany by 2030 as part of a major cost-reduction program aimed at addressing falling profits and rising competition.
In its annual report, the automaker — which owns brands including Audi, Bugatti, SEAT, Škoda Auto and Porsche — said weakening global demand, higher production costs and stronger competition are forcing the company to revise its targets.
Most of the job reductions will come from the Volkswagen passenger cars division, where about 35,000 positions are expected to be eliminated. Audi plans to cut roughly 7,500 jobs by 2029, while Porsche aims to reduce its workforce by about 3,900, including temporary workers.
The company said the cuts will mainly be implemented through voluntary measures, such as early retirement and severance packages, rather than compulsory layoffs.
The reductions are part of a broader €15 billion ($17.5 billion) cost-saving program, which will also affect the group’s luxury brands and its software unit Cariad.
Volkswagen CEO Oliver Blume said the company is facing growing pressure from Chinese electric vehicle manufacturers, US tariffs and high production costs.
“In the European market, we are increasingly facing price competition from Chinese manufacturers,” Blume said, adding that the situation requires the company to intensify cost-cutting efforts.
The group also reported a sharp decline in earnings for 2025. Revenue slipped 0.8% to €322 billion, while operating profit dropped 54% to €8.9 billion. Net profit fell 44.3% to €6.9 billion, and the operating margin declined to 2.8% from 5.9% a year earlier.
Vehicle deliveries decreased slightly by 0.2% to 9.02 million units, with deliveries in China falling 6% amid stronger competition from local manufacturers.
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