Volkswagen plans 50,000 job cuts as profit slumps
Volkswagen plans to cut around 50,000 jobs in Germany by 2030 as the company faces declining profits and rising competitive pressure in global markets, reports a Qazinform News Agency correspondent.
“In total, around 50,000 jobs are due to be cut by 2030 across the Volkswagen Group in Germany,” Chief Executive Officer Oliver Blume said in a letter to shareholders published in the company’s annual report.
The German carmaker had already agreed with labor unions in late 2024 to eliminate 35,000 jobs, mainly at the Volkswagen brand, as part of a broader restructuring plan aimed at saving €15 billion annually. According to Blume, additional reductions will also affect premium brands Audi and Porsche, as well as software subsidiary Cariad.
Europe’s largest automaker has been grappling with several challenges, including stagnant demand in Europe, rising costs linked to investments in electric vehicles, and falling sales in China. Once a dominant player in the Chinese market, Volkswagen has recently lost ground to local competitors such as BYD and Geely.
The company reported that earnings after tax dropped by about 44% last year to €6.9 billion, the lowest level since 2016.
Chief Financial Officer Arno Antlitz warned that the group’s profitability remains under pressure. “We can only realize this if we continue to rigorously reduce costs,” he said. “That is what we will focus on in the coming months.”
Volkswagen expects its core profit margin in 2026 to range between 4% and 5.5%, amid ongoing global trade uncertainties and volatile commodity and energy markets.
Earlier, in December 2024, Qazinform News Agency reported that Volkswagen AG faced warning strikes organized by IG Metall amid disputes over collective bargaining agreements.