Volkswagen Plans to cut 50,000 Jobs as Profit Falls
Last update: March 10, 2026
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Automaker faces rising competition, tariffs and costly shift to electric vehicles.
Germany’s automotive giant Volkswagen said Tuesday it plans to cut about 50,000 jobs in Germany by 2030 as profits fell to their lowest level in nearly a decade.
Chief executive Oliver Blume said in a letter to shareholders that the cuts would affect several parts of the group, including premium brands Audi and Porsche as well as software subsidiary Cariad.
Volkswagen had already agreed with unions in late 2024 to reduce 35,000 jobs at its main brand by 2030 as part of plans to save 15 billion euros annually.
The company said it is facing strong competition from Chinese manufacturers such as BYD and Geely, especially in the electric vehicle market.
Blume also warned that Chinese carmakers expanding into Europe would increase price pressure on traditional automakers.
Volkswagen reported that earnings after tax fell by about 44 percent last year to 6.9 billion euros, the company’s lowest profit since 2016.
The decline was driven by competition in China, tariffs introduced by US President Donald Trump on foreign automakers, and restructuring costs at Porsche.
Blume said the German car industry is undergoing a major transformation rather than a temporary slowdown, adding that long standing business models are no longer sustainable.
CBI News reports that the company expects its core profit margin in 2026 to range between 4 and 5.5 percent as it continues to restructure and manage the costly transition to electric vehicles.
