Published
11/03/2026 às 00:23
Updated
11/03/2026 às 00:24
Volkswagen announced it will eliminate approximately 50.000 jobs in Germany by 2030 after reporting a 44% drop in net profit in 2025, while facing increasing competition from Chinese automakers, US tariffs, and stagnant demand in the European market.
Volkswagen announced on Tuesday that it plans to cut approximately 50.000 jobs in Germany by 2030. The decision is part of a cost-cutting plan in the face of competition from China, stagnant demand in Europe, and US tariffs.
The announcement was made by Volkswagen’s president, Oliver Blume, in a letter sent to shareholders during the presentation of the group’s annual results. According to him, the cuts will affect various business areas of the company in Germany.
Volkswagen’s plan expands job cuts stipulated in agreement with unions.
Volkswagen had already signed an agreement with unions at the end of 2024 to cut 35.000 jobs by 2030. The goal was to implement cost-saving measures capable of generating annual cost reductions of €15 billion.
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Now, with the revised plan, Volkswagen has increased the number of cuts to approximately 50.000 jobs in Germany. According to Oliver Blume, the staff reduction will affect all areas of the group’s operations.
In addition to core operations, Volkswagen’s cuts will also affect luxury brands belonging to the group. These include Audi and Porsche, as well as the software subsidiary Cariad.
Volkswagen aims for annual savings exceeding €6 billion by 2030.
According to data released by the company, the measures adopted by Volkswagen have already generated savings of 1 billion euros by 2025. The expectation is that the annual savings will exceed 6 billion euros by 2030.
The cost-cutting plan was accelerated after the release of the group’s financial results. In 2025, Volkswagen’s net profit fell by 44%, reaching 6,9 billion euros.
The drop occurred in a context of increased additional charges, totaling 9 billion euros. These include 5 billion euros related to Porsche’s change in electric strategy and 3 billion euros associated with tariffs imposed by the United States.
Financial results show a drop in profits and stagnant revenues.
In addition to the decline in net profit, Volkswagen also recorded a significant drop in operating profit. The indicator fell by almost 53%, totaling 8,9 billion euros in the period.
The group’s turnover remained virtually stable, reaching 322 billion euros. During the same period, Volkswagen delivered approximately nine million vehicles, a figure 0,2% lower than that recorded in the previous year.
Sales showed distinct trends across markets. While Europe and South America experienced growth between 5% and 10%, North America registered a 12% drop, affected by US tariffs.
Volkswagen plans to expand production in the United States and launch new models in China.
To overcome customs barriers, Volkswagen plans to transfer part of its production to the United States.
The strategy will be driven by the American brand Scout, relaunched to manufacture electric SUVs and pickup trucks starting in 2027.
Meanwhile, Volkswagen announced changes to the group’s management structure. From April 1st, Oliver Blume will oversee development, purchasing, production, and sales across all of the company’s operations.
By 2026, Volkswagen anticipates that profitability will remain under pressure. This scenario includes rising raw material costs, intense competition, and geopolitical tensions influencing the global market.
In China, a market that was once Volkswagen’s main focus and is now experiencing a 6% decline, the group plans to bounce back with the launch of the largest product campaign in its history, featuring new models developed specifically for the local market.