Volkswagen Plans Major Job Cuts

Why it matters

The job cuts will primarily affect operations in Germany, where Volkswagen's manufacturing and administrative core is located. Brands impacted include Volkswagen, Audi, Porsche, and the software subsidiary Cariad. This decision adds to a previous agreement from late 2024 to cut 35,000 jobs by 2030, aiming to save €15 billion annually. Volkswagen's pre-tax profits fell 54% in 2025, which the company attributes to US tariffs and a shifting global market. Porsche's operating profit declined by 98% due to delayed EV transition plans. CEO Oliver Blume cited "volatile geopolitical and geoeconomic conditions" as contributing factors. The company aims for EVs to make up 80% of European sales and 55% of North American sales by 2030. They plan to launch over 20 new models globally in 2026. VW aims to be the world market leader in e-mobility by 2025.

Key numbers

• Volkswagen will cut 50K jobs (17% of its German workforce) by 2030 reported amid profit drops from China EVs, US tariffs, and energy costs.
• This decision adds to a previous agreement from late 2024 to cut 35,000 jobs by 2030, aiming to save €15 billion annually.
• Volkswagen's pre-tax profits fell 54% in 2025, which the company attributes to US tariffs and a shifting global market.
• Porsche's operating profit declined by 98% due to delayed EV transition plans.

What happens next

• The job cuts will primarily affect operations in Germany, where Volkswagen's manufacturing and administrative core is located.
• Porsche's operating profit declined by 98% due to delayed EV transition plans.
• The company aims for EVs to make up 80% of European sales and 55% of North American sales by 2030.

Sources

• 2030 reported

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