The largest European automaker Volkswagen Group has announced its intention to cut up to 50,000 jobs in its domestic market, Germany, by 2030. This is part of a large-scale cost-saving program following a sharp decline in profits and worsening conditions in the global automotive market.
In 2025, the company's net profit fell by approximately 44% – to €6.9 billion compared to €12.4 billion the previous year, according to the financial report for the fourth quarter of 2025 released on March 10. This is one of the worst results since the diesel scandal of 2015.
The company's revenue decreased by 0.8% – to approximately €322 billion.
Such results are attributed to the introduction of tariffs in the U.S., fierce competition in China, and the costly modernization of the sports car manufacturer Porsche.
Porsche's subsidiary reported only €90 million in operating profit in 2025 compared to €5.3 billion the year before.
About 35,000 positions will be cut mainly in the VW brand, another 7,500 in Audi, and 3,900 in Porsche. The reductions are to be achieved primarily through retirement programs, with the company ruling out forced layoffs.
