Volkswagen plans to cut 50,000 jobs in Germany by 2030 amid profit slump.
Rising Chinese EV competition, US tariffs and production costs weigh on earnings.
Audi, Porsche and software unit Cariad among brands likely impacted by layoffs.
Volkswagen, a massive automaker, said on March 11 that it would eliminate 50,000 jobs in Germany by 2030 after its profit dropped to its lowest point in almost ten years.
The development occurs as the 10-brand group battles growing competition from Chinese manufacturers of electric vehicles, growing production costs, and the effects of US tariffs, all of which have negatively impacted its profits.
2 March 2026
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“In total, around 50,000 jobs are due to be cut by 2030 across the Volkswagen Group in Germany,” Volkswagen CEO Oliver Blume said in a letter to shareholders in the firm’s annual report.
Brands to be Impacted
The group had already reached a deal with the unions in late 2024 to lay off 35,000 employees by 2030 at its core brand, as part of a broader plan to save 15bn euros annually, AFP reported.
The additional cuts will extend beyond the core Volkswagen brand, affecting workers of its premium marques Audi and Porsche, as well as the group’s software subsidiary Cariad, CEO Blume added.
Citing CEO Blume, The Guardian reported that the fall in profits, to €8.9bn (£6.6bn), was largely “attributable to US tariffs”, the company reported, as well as a costly strategy shift at Porsche, which has postponed its transition to EVs owing to slack demand.
Porsche’s operating profit nearly vanished in 2025, falling by 98% to €90m.
Even before Trump slapped tariffs on foreign carmakers last year, Volkswagen was struggling with flat demand in Europe and the costs of investing in EVs despite disappointing demand and insufficient infrastructure.
Domestic competition ate away at the group’s share in China, the world’s biggest car market. Blume announced “the largest product campaign in our history” there to try to claw back customers.
“After three intensive years of realignment within the Volkswagen Group, we are seeing tangible progress,” Blume said. “At the same time, we are operating in a fundamentally different environment.”
EV Transition Challenges
As the world's transition to electric vehicles quickens, traditional automakers are coming under more and more pressure, especially from Chinese producers who are offering more affordable EV models.
China accounted for almost 60% of global EV sales in 2023, according to the International Energy Agency report, giving its businesses a significant production and pricing scale advantage. According to Reuters, this has increased competition for European automakers who are already struggling with high EV transition costs and low demand in some markets.
