Volkswagen Plans Major Job Cuts in Germany
Volkswagen plans to cut 50,000 jobs in Germany by 2030 across Audi and Porsche as profits decline.
The cuts are reportedly needed after a 54% drop in pre-tax profits, hitting the lowest level in nearly a decade. Factors include rising production costs, competition from Chinese EV makers and US tariffs. The job cuts will affect Audi and Porsche, in addition to the core Volkswagen brand and its software division, Cariad. VW had already agreed with unions to cut 35,000 jobs at its core brand in Germany by 2030. VW's operating profit margin dropped to 2.8% in 2025, which executives say isn't sustainable. The company aims to push margins back up to 8-10% through cost cuts and restructuring. Porsche's operating profit took a huge hit, falling 98% to €90 million in 2025. This was partially due to a costly strategy shift to stick with combustion engines longer than planned.
