Volkswagen, the German automotive giant, announced on Tuesday that it plans to cut 50,000 jobs in Germany by 2030. This comes after the company reported profits at their lowest level in nearly ten years. The carmaker is facing several challenges.
Competition from Chinese electric vehicle makers is growing, production costs are rising, and US tariffs have also hit earnings. According to Euro News, these factors together have put a lot of pressure on the 10-brand group.
“In total, around 50,000 jobs are due to be cut by 2030 across the Volkswagen Group in Germany,” Volkswagen CEO Oliver Blume said in a letter to shareholders in the company’s annual report.
Volkswagen layoffs 2026: Profits take a big hit
According to the Euro News, Volkswagen Group saw its profits nearly cut in half in 2025, hitting €6.9 billion, marking the company’s worst result since the diesel emissions scandal almost a decade ago. The slump comes as trade conflicts, challenges in China, and a strategic shift at Porsche weigh heavily on Europe’s largest carmaker.
In response to the crisis, the group plans to cut 50,000 jobs in Germany by 2030. “This is a tough environment, and we need to adapt to stay competitive,” said Blume during a press briefing in Wolfsburg on Tuesday. The job cuts go beyond the 35,000 reductions already agreed with trade unions at the end of 2024.
According to Euro News, revenue remained steady at around €322 billion, but operating profit nearly halved to €8.9 billion. CFO Arno Antlitz highlighted the difficult conditions, pointing to “geopolitical tensions, new trade barriers, and increasing competition, particularly from China.”
Volkswagen shares, however, rose almost 3.7% in Frankfurt, after Donald Trump commented on Iran sanctions and a potential end to the conflict.
Volkswagen layoffs: Which brands will be affected?
Volkswagen had already agreed with trade unions at the end of 2024 to cut 35,000 jobs by 2030 at its main Volkswagen brand. This was part of a larger plan to save €15 billion a year, according to AFP.
The new cuts will come from premium brands like Audi and Porsche, as well as Volkswagen’s software subsidiary, Cariad, Blume added. This step is part of Volkswagen’s broader strategy to reduce costs and stay competitive amid global challenges.
Volkswagen layoffs: Problems in China and the US
Volkswagen did grow in Europe, but it wasn’t enough to offset declines in China and North America. Trump-era tariffs hit Volkswagen’s US sales hard. Changes to environmental rules and the loss of government subsidies slowed demand for electric vehicles, affecting projects like the new Scout electric pick-up truck plant.
According to Euro News, in China, Volkswagen’s most important growth market, local rivals like BYD, Geely, and Nio are closing the technology gap and capturing more market share. Volkswagen is responding with an “in China for China” strategy, focusing on local development and supply chains.
Porsche, the sports car brand, has felt the impact more than most. Chinese sales dropped, and the brand absorbed the costs of changing strategy.
Back in 2015, Volkswagen was caught installing software in diesel vehicles to cheat emissions tests. The scandal wiped billions off the company’s market value, led to criminal prosecutions, and cost the group over €30 billion in fines, settlements, and recalls worldwide. Experts now believe the current struggles could be even more damaging.
Even so, there are signs of recovery. The final quarter of 2025 showed better performance than earlier in the year. Volkswagen expects profitability to improve in 2026, with an operating margin forecast of 4.0–5.5%, up from 2.8% in 2025.