Volkswagen to cut 50K jobs amid challenges
Volkswagen plans to cut 50K jobs amid China competition, US tariffs, and high energy costs, signaling European industrial strain.
The cuts will primarily affect German operations across all brands, including Audi and Porsche. This expands on a 2024 agreement with unions to reduce 35,000 jobs. The company's pre-tax profits have fallen 54% due to US tariffs and a shift in strategy at Porsche. Porsche's operating profit dropped by 98% after postponing its EV transition because of low demand. CEO Oliver Blume stated that the company is operating in a "fundamentally different environment". He pointed to trade policy barriers and changing markets as key factors. Volkswagen aims to cut operating costs by 20% by 2028. Plant closures are a possibility as part of this restructuring. The company's 2025 after-tax profits fell 44.3% year-on-year to €6.90 billion. US tariffs alone cost VW nearly $6 billion in 2025.
