Volkswagen plans to eliminate 50,000 jobs in Germany by 2030 after profits dropped to their lowest level since 2016.
Chief executive Oliver Blume said the cuts will affect multiple divisions across the group, including Audi and Porsche.
Europe’s largest automaker reported a 44% decline in post-tax profits in 2025, reflecting mounting pressures across global markets.
The company cited U.S. import tariffs, rising Chinese competition, and costly electric vehicle restructuring as major factors behind the sharp earnings decline.
Volkswagen reported net profit falling from €12.4 billion to €6.9 billion last year, underscoring growing challenges for traditional automakers.
The group has already reached an agreement with unions to cut more than 35,000 positions in Germany while aiming to save roughly €15 billion.
Demand for German vehicles in China has weakened, while Chinese brands expand in Europe, intensifying competition.
Finance chief Arno Antlitz warned current margins are “not sufficient in the long run,” stressing the need for rigorous cost reductions in the coming months.
