Chief Executive Oliver Blume told shareholders that the cuts would affect the entire Volkswagen Group, including Audi and Porsche. The announcement comes as post-tax profits fell by roughly 44% in 2025, dropping from €12.4bn (£10.7bn; $14.4bn) to €6.9bn (£6.1bn; $8bn).
Volkswagen cited several factors behind the decline, including US import tariffs, fierce competition from Chinese automakers, and significant costs associated with the industry’s shift to electric vehicles.
Blume noted in a letter to shareholders, “We are operating in a fundamentally different environment. In total, around 50,000 jobs are due to be cut by 2030 across the Volkswagen Group in Germany.”
The company had already reached an agreement with unions to reduce more than 35,000 positions in a “socially responsible manner” by 2030, saving an estimated €15bn (£12.4bn).
The German automaker has also been affected by falling demand in China, historically one of its most profitable markets, while Chinese brands have expanded into Europe, intensifying competition. The 25% US tariffs on car imports further exacerbated the pressure on Volkswagen’s margins.
Looking ahead, Volkswagen predicts a core profit margin of between 4% and 5.5% for 2026, potentially lower than the 4.6% margin achieved in 2025. Finance chief Arno Antlitz warned that the current profit margin “is not sufficient in the long run” and emphasized the need for continued cost reductions.
“We can only realise this if we continue to rigorously reduce costs. That is what we will focus on in the coming months,” Antlitz said, signaling a period of sustained financial discipline for Europe’s largest carmaker.