Volkswagen Group, the German car manufacturer, has announced plans to cut 50,000 jobs by the end of the decade as part of a comprehensive cost-cutting strategy amid what it describes as a “challenging environment.”
The company reported revenue of €321.9 billion (£278.6 billion) for 2025, which is largely unchanged from the previous year.
However, its operating profit sharply declined from €19.1 billion to €8.9 billion, a drop the company partially attributed to tariffs imposed by Donald Trump on imports to the United States.
Volkswagen also highlighted challenges at Porsche AG, which recently halted parts of its transition to electric vehicles due to weaker-than-expected demand.
The job cuts will impact the entire group, including brands such as Audi AG and the software unit Cariad, as Volkswagen aims to restore profit margins to between 8% and 10% by 2030.
This announcement follows an earlier 2024 agreement between Volkswagen and labour unions to cut more than 35,000 jobs and reduce costs by billions of euros annually. The new plan significantly expands on those reductions.
Oliver Blume, CEO of Volkswagen Group said: “We have demonstrated that our substance is robust and that our future-oriented programs are working.
“Supported by strong financial momentum at year-end, we further strengthened our company. After three intensive years of realignment within the Volkswagen Group, we are seeing tangible progress.
“At the same time, we are operating in a fundamentally different environment. We are therefore determined to continue to pursue the course we have set.”
