Volkswagen to cut jobs in Germany as profits hit new low
Volkswagen has announced plans to cut 50,000 jobs in Germany as it faces declining profits. The company’s earnings have dropped to their lowest level since 2016, with challenges including US tariffs and tough competition in China. CEO Oliver Blume detailed the cuts, which will affect several brands within the group. Volkswagen is focusing on cost reductions to improve its competitiveness.
What we know
- Volkswagen will cut 50,000 jobs in Germany by 2030, according to CEO Oliver Blume.
- A previous deal with unions at the end of 2024 had already set plans to cut 35,000 jobs by 2030.
- The additional job cuts will impact premium brands Audi, Porsche, and the software subsidiary Cariad.
- Earnings after tax fell about 44 percent last year, reaching their lowest since 2016.
- The company expects a core profit margin of between 4 and 5.5 percent for 2026, possibly lower than the 4.6 percent achieved this year.
