Volkswagen Slashes 50,000 German Jobs by 2030 After Profits Plunge

Volkswagen announced a major Germany-focused workforce reduction after posting its weakest post‑Dieselgate results.

“01:05 01:18 13:03 12:29 02:33 02:08 06:51 02:22 20 Minutes avec AFP Publié le 10/03/2026 à 09h17• Mis à jour le 10/03/2026 à 10h31 «Au total, environ50”

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The company said it will cut about 50,000 jobs in Germany by 2030 as it restructures to restore profitability.

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CEO Oliver Blume communicated the expanded plan — up from the previously agreed 35,000 cuts — while reporting a sharp fall in profits for 2025.

He framed the job losses as part of a drive to save roughly €15 billion and more than €6 billion annually by 2030.

The decision covers brands across the group including Audi and Porsche and affects procurement, production, sales and quality functions.

The group reported a steep decline in 2025 profits and margins: net profit after tax fell to about €6.9 billion and operating profit plunged, with operating result and margins down sharply year‑on‑year.

Different outlets report slightly varying percentage drops — roughly 44% in some accounts and as much as 46% in another — but they converge on the headline slump to around €6.9 billion and a halving of operating profit.

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Operating margins excluding certain charges are reported near the mid‑4% range, which management says is insufficient to fund future investment without further cuts.

Management and the company point to a cluster of external and structural pressures behind the hit to profits.

“- Published Volkswagen has said it will cut 50,000 jobs in Germany by 2030 as its profits dropped to their lowest level since 2016”

BBC

These include new U.S. 25% import tariffs, stronger competition from Chinese brands and weaker demand in China, large special charges tied to Porsche's product realignment, and the broader costs of the EV transition and restructuring.

Outlets enumerate the charges differently — reporting multi-billion euro items for tariffs, Porsche strategy shifts and restructuring — but all underline that tariffs and strategy retooling materially weighed on 2025 results and margins.

Volkswagen has already begun cost‑cutting measures and centralized oversight intended to simplify operations and preserve brand autonomy.

The group says it saved roughly €1 billion in 2025 and is targeting more than €6 billion of annual net cost savings by 2030.

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From April 1, Blume will centrally oversee development, purchasing, production and sales to streamline decision‑making.

Senior management has taken pay cuts as part of the package.

Europe and South America showed modest growth while North America and China weakened.

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North America was hit by tariffs and China by intense competition.

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Those results prompted plans to localize production, including reviving the Scout brand for U.S. EV models, and to launch an extensive product push in China.

Volkswagen’s 2026 guidance is cautious, projecting modest revenue growth and a 4–5.5% operating margin assuming current tariffs persist.

Volkswagen warned that geopolitical, trade and market‑mix risks could keep profitability under pressure.