German automotive giant Volkswagen plans to eliminate around 50.000 jobs in Germany, as the company's net profit in 2025 fell by 44 percent to 6,9 billion euros. It is the weakest result since the outbreak of the affair with diesel engines in 2015.
The company's CEO, Oliver Blume, announced that the cost-cutting program would be expanded. Thus, the planned reduction in the number of employees has been increased compared to the abolition of 35.000 jobs agreed with the trade unions at the end of 2024.
"In total, about 50.000 jobs will be eliminated within the Volkswagen Group in Germany by 2030. As a result of collective agreements and measures to reduce the number of employees, we managed to achieve savings of about one billion euros in the fiscal year 2025, as planned. We are well on our way to achieving our goal - net annual cost savings of more than six billion euros at the Group level by 2030," it was announced.
Audi, Porsche and its software subsidiary CARIAD will implement cost-cutting measures as part of the company's strategic plan to optimize operations and adapt to changes in the automotive market, it was announced.
Extremely demanding environment
The decline in profits comes after the stagnation of revenues, which in 2025 amounted to around 322 billion euros. The company's operating profit was almost halved and fell to around 8,9 billion euros.
Financial director Arno Antlic assessed that the company is facing an "extremely demanding environment", marked by geopolitical tensions, new trade barriers and increasingly strong competition, primarily from China.
Earlier layoffs at Volkswagen
Volkswagen has carried out major downsizing programs before employees. After the diesel scandal in 2015, the company launched a multi-year cost rationalization plan, which involved tens of thousands of jobs worldwide, mostly through natural attrition and voluntary severance payments.
At the end of 2024, management and unions reached an agreement to cut about 35.000 jobs in Germany, but the new plan foresees even deeper cuts to help the company adapt to changes in the global market.
Global wave of layoffs in the auto industry
Volkswagen's planned downsizing fits into the puzzle of global restructuring automotive industry. In the last few years, the sector has been undergoing one of the biggest transformations in recent decades. The transition to electric vehicles, digitization of production and fierce competition from Chinese manufacturers are underway.
According to data from the European association of suppliers of the automotive industry CLEPA, more than 100.000 jobs have been announced in this sector in recent years.
Major restructuring programs have been implemented or announced by other companies such as Ford, General Motors, Nissan and Stellantis.
